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Toyota, Subaru Renew Partnership to Focus on AWD, EVs

The new agreement strengthens a relationship focused on sharing automotive technological advancements referred to as CASE.

An illustration of a prototype BEV system.
An illustration of a prototype BEV system.
Image courtesy of Toyota

Toyota Motor Corporation (Toyota) and Subaru Corporation (Subaru) have agreed on a new business and capital alliance with the aim of further developing and strengthening their long-term partnership. Ever since concluding an agreement on business collaboration in 2005, the partnership between Toyota and Subaru has included contract production by Subaru of Toyota vehicles, and supply by Toyota of vehicles to Subaru, as well as joint development of the rear-wheel-drive Toyota 86 and Subaru BRZ sports car models.

With the changing automotive landscape calling for new CASE (connected, autonomous/automated, shared, and electric) technology, Toyota and Subaru disclosed in June that they have agreed to jointly develop a platform dedicated to battery electric vehicles (BEVs). The duo will also jointly develop a BEV model, both of which will employ Subaru's AWD technologies and Toyota's vehicle electrification technologies. This will include leveraging the success of the Crosstrek Hybrid to expand the use of the Toyota Hybrid System into other Subaru models.

The two companies have also agreed that Toyota will increase its equity stake in Subaru and that Subaru will acquire shares in Toyota.

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