Toyota Motor Corporation and Subaru Corporation have agreed to deepen their business relationship. Toyota announced on Friday that it will increase its stake in Subaru from 16.8% to 20%. In return, Subaru will purchase 80 billion Yen worth of Toyota shares. 

Both companies also confirmed that they will continue to develop the next generation Toyota 86 and Subaru BRZ.

Apart from the upcoming Toyota 86/BRZ duo, Toyota and Subaru will also co-develop a platform dedicated to battery electric vehicles (BEVs) and jointly develop a BEV model, both of which will utilize Subaru’s AWD technologies and Toyota’s electrification technologies.

Following the North American market Subaru Crosstrek Hybrid, Subaru will also implement the Toyota Hybrid System (THS) into other Subaru models.

Toyota President Akio Toyoda said: "During this once-in-a-century period of profound transformation, even if CASE changes how cars will be, driving enjoyment will remain an inherent part of automobiles and is something that I think we must continue to strongly preserve. I, myself, am a rallyist, and, through my experience of training hard in an Impreza, I have felt in my veins the wonders of Subaru's AWD technologies. Meanwhile, we at Toyota have been going all out to hone our all-wheel-drive technologies by participating in the World Rally Championship, among other activities. Our companies, both of which have long pursued driving enjoyment, now want to pursue the possibilities of making ever-better cars suitable for the CASE era by bringing together our strengths and by further deepening our relationship."

Subaru President Tomomi Nakamura said: "Between our company and Toyota is an alliance that already has a history of 14 years. During this time, we have deepened our bonds in various fields such as product development, production, and sales, including through personnel exchanges. By taking our relationship one step further and mutually honing our technologies, we will strengthen our ability to respond to CASE and other demands, and will accelerate our shared aspirations for making ever-better cars. This new step in our alliance with Toyota will lead to enhancing 'Enjoyment and Peace of Mind' that Subaru is committed to deliver; and I am confident that our customers will love what we offer through these efforts."