Toyota Looking to Take Full Control of Subaru
02-05-07, 07:32 AM
#1
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Toyota Looking to Take Full Control of Subaru
Law OK with Toyota-Fuji
James B. Treece | | Automotive News / February 5, 2007 - 1:00 am
TOKYO -- A change in Japanese antitrust rules has opened the way for Toyota Motor Corp. to take over Subaru maker Fuji Heavy Industries Ltd.
In October 2005, Toyota bought 8.7 percent of Fuji Heavy. At the time, General Motors was selling its 20 percent stake in Fuji Heavy.
Analysts said Toyota would have preferred to buy a controlling stake in the Subaru carmaker, but doing so would have run afoul of antitrust rules. Toyota and Fuji Heavy combined held 45.6 percent of the 2006 Japanese car market.
Until now, that was a problem. Antitrust rules forbid any company to control 50 percent of Japan's market for any product.
Under the rule change, though, Japan's antitrust authorities will consider global market share, not Japanese market share, in reviewing mergers and acquisitions.
Companies now will be allowed to join regardless of their combined Japanese market share, so long as the new company's global market share is under 50 percent. The change, which takes effect April 1, is designed to strengthen Japanese companies' competitiveness on world markets.
James B. Treece | | Automotive News / February 5, 2007 - 1:00 am
TOKYO -- A change in Japanese antitrust rules has opened the way for Toyota Motor Corp. to take over Subaru maker Fuji Heavy Industries Ltd.
In October 2005, Toyota bought 8.7 percent of Fuji Heavy. At the time, General Motors was selling its 20 percent stake in Fuji Heavy.
Analysts said Toyota would have preferred to buy a controlling stake in the Subaru carmaker, but doing so would have run afoul of antitrust rules. Toyota and Fuji Heavy combined held 45.6 percent of the 2006 Japanese car market.
Until now, that was a problem. Antitrust rules forbid any company to control 50 percent of Japan's market for any product.
Under the rule change, though, Japan's antitrust authorities will consider global market share, not Japanese market share, in reviewing mergers and acquisitions.
Companies now will be allowed to join regardless of their combined Japanese market share, so long as the new company's global market share is under 50 percent. The change, which takes effect April 1, is designed to strengthen Japanese companies' competitiveness on world markets.
02-05-07, 08:30 AM
#3
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I went to the Subaru dealer on Saturday that we have here (they just opened up recently in Mexico) and the manager of the dealership was commenting to me on this possibility. Would really enjoy seeing this occur as I have admired the WRX and even the turbocharged Forester.
02-05-07, 09:02 AM
#5
Toyota = all about cutting cost.
Subaru = screw cost, we build what we like.
this isnt good guys. I dont want Fuji Heavy Industries to lose its character. I like how they use aluminum in the Legacy to save a few kilos. I like how they dedicate to boxer configuration engines. I like how they go against the norm and build a 660cc R2 with double wishbone suspension. I really hope Toyota still will let them build the diesel hybrid they are planning on building. Im already mad they pulled the plug on the Atkinson cycle engine with turbo and hybrid....it seems like the perfect engine.
I dont want Subaru to die. and yes, i admit, i am a subaru fan as well.
Subaru = screw cost, we build what we like.
this isnt good guys. I dont want Fuji Heavy Industries to lose its character. I like how they use aluminum in the Legacy to save a few kilos. I like how they dedicate to boxer configuration engines. I like how they go against the norm and build a 660cc R2 with double wishbone suspension. I really hope Toyota still will let them build the diesel hybrid they are planning on building. Im already mad they pulled the plug on the Atkinson cycle engine with turbo and hybrid....it seems like the perfect engine.
I dont want Subaru to die. and yes, i admit, i am a subaru fan as well.
02-05-07, 09:12 AM
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Toyota = all about cutting cost.
Subaru = screw cost, we build what we like.
this isnt good guys. I dont want Fuji Heavy Industries to lose its character. I like how they use aluminum in the Legacy to save a few kilos. I like how they dedicate to boxer configuration engines. I like how they go against the norm and build a 660cc R2 with double wishbone suspension. I really hope Toyota still will let them build the diesel hybrid they are planning on building. Im already mad they pulled the plug on the Atkinson cycle engine with turbo and hybrid....it seems like the perfect engine.
I dont want Subaru to die. and yes, i admit, i am a subaru fan as well.
Subaru = screw cost, we build what we like.
this isnt good guys. I dont want Fuji Heavy Industries to lose its character. I like how they use aluminum in the Legacy to save a few kilos. I like how they dedicate to boxer configuration engines. I like how they go against the norm and build a 660cc R2 with double wishbone suspension. I really hope Toyota still will let them build the diesel hybrid they are planning on building. Im already mad they pulled the plug on the Atkinson cycle engine with turbo and hybrid....it seems like the perfect engine.
I dont want Subaru to die. and yes, i admit, i am a subaru fan as well.
In other words, Toyota owning Subaru won't necessarily mean it will fully control all operations of Subaru, and does not mean that Subaru cars will suddenly lose their uniqueness.
I think Toyota taking control of Subaru will simply mean more joint development between Toyota and Fuji on battery development, and Toyota gaining more knowledge and experience in building compact AWD systems.
Such a tie-up could even mean a possible return to WRC for Toyota
.
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02-05-07, 09:17 AM
#8
This doesn't mean that Subaru will "die". Keep in mind that Hino is a part of Toyota, and has been for a long time. Hino, even now, builds their trucks under a somewhat different philosophy than Toyota does. For Hino trucks, quality and reliability, along with low operating costs and cheap repairs are top priorities. That's why Hino trucks in some countries are fairly expensive compared to the competition, but Hino has a near-legendary reputation for it's quality.
I think Toyota taking control of Subaru will simply mean more joint development between Toyota and Fuji on battery development, and Toyota gaining more knowledge and experience in building compact AWD systems.
Such a tie-up could even mean a possible return to WRC for Toyota.
I think Toyota taking control of Subaru will simply mean more joint development between Toyota and Fuji on battery development, and Toyota gaining more knowledge and experience in building compact AWD systems.
Such a tie-up could even mean a possible return to WRC for Toyota
.and if Toyota is going to return for WRC, they better do a better job of cheating this time
02-05-07, 10:48 AM
#9
I wonder if this would affect the price of Subaru cars much...
Seems like this would be good for Toyota and maybe they can come out with another sports car using some of that Subaru drivetrain and hopefully it'll be priced similarly.
Seems like this would be good for Toyota and maybe they can come out with another sports car using some of that Subaru drivetrain and hopefully it'll be priced similarly.
02-05-07, 11:38 AM
#11
Toyota = all about cutting cost.
Subaru = screw cost, we build what we like.
this isnt good guys. I dont want Fuji Heavy Industries to lose its character. I like how they use aluminum in the Legacy to save a few kilos. I like how they dedicate to boxer configuration engines. I like how they go against the norm and build a 660cc R2 with double wishbone suspension. I really hope Toyota still will let them build the diesel hybrid they are planning on building. Im already mad they pulled the plug on the Atkinson cycle engine with turbo and hybrid....it seems like the perfect engine.
I dont want Subaru to die. and yes, i admit, i am a subaru fan as well.
Subaru = screw cost, we build what we like.
this isnt good guys. I dont want Fuji Heavy Industries to lose its character. I like how they use aluminum in the Legacy to save a few kilos. I like how they dedicate to boxer configuration engines. I like how they go against the norm and build a 660cc R2 with double wishbone suspension. I really hope Toyota still will let them build the diesel hybrid they are planning on building. Im already mad they pulled the plug on the Atkinson cycle engine with turbo and hybrid....it seems like the perfect engine.
I dont want Subaru to die. and yes, i admit, i am a subaru fan as well.
Toyota could use Subaru as their sports brand, same as Scions are its youth brand...
Subaru has very limited sales and appeal outside of Japan and USA, and it is not as if they sell a lot in USA either...
02-05-07, 12:24 PM
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I doubt it... More money for Subaru means they have ways to develop more cars and better cars.
Toyota could use Subaru as their sports brand, same as Scions are its youth brand...
Subaru has very limited sales and appeal outside of Japan and USA, and it is not as if they sell a lot in USA either...
Toyota could use Subaru as their sports brand, same as Scions are its youth brand...
Subaru has very limited sales and appeal outside of Japan and USA, and it is not as if they sell a lot in USA either...
subaru is doing very well in canada because a lot of canadians are buying into AWD for snowing winters and vancouverites are more outdoorsy
02-05-07, 06:38 PM
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Lexus IS/GS with subaru awd = great competition for audi