Report: Toyota to build Ractis subcompact for Subaru in Japan

Subaru sees a demand for 1.3- and 1.5-liter cars in Japan at the same time as it sees a void in its lineup of vehicles with that displacement. To plug that hole, Subaru is turning to Toyota for a supply of its Ractis subcompact, a five-door, five-seater that offers both of the relevant engine sizes and comes in two-wheel and all-wheel drive.

Toyota will ship roughly 10,000 models to Subaru every year, to begin once the Ractis, on sale since 2005, comes in for thorough revision. It's the first time Toyota has agreed to supply a Japanese carmaker with finished products, perhaps aided in this case by the fact that Toyota owns 16.5% of Fuji Heavy Industries, Subaru's parent company.

[Source: Green Car Congress]