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Toyota buys stake in Subaru

2005-10-05 16:28

The all-new Subaru B9 Tribeca will rival cars such as the BMW X5, VW Touareg and Volvo XC90.

GM is to dissolve its ties with Fuji, the companies said on Wednesday.

Reuters says GM, which owns 20.09% of Fuji Heavy, has been struggling to repair a balance sheet dogged by huge pension and health care liabilities and address sliding US sales amid cut-throat competition in the motor industry.

GM will sell its remaining 11.4% stake in Fuji Heavy in the market.

R&D

Toyota will buy 68-million shares in Fuji Heavy and the two companies will study opportunities for tie-ups in research and development as well as production, Fuji Heavy said.

Subaru is well-known for its cutting edge all-wheel drive technology.

Fuji Heavy said it would end a joint-development project with GM's Saab brand.

and would book a 5 billion yen ($43.73 million) special loss in the current business year.

Fuji Heavy recently began building a Saab model for GM, but their cooperation beyond that is limited to some joint parts procurement and collaboration on research and development.

Toyota has capital alliances with Japanese compact vehicle maker Daihatsu and truck maker Hino Motors, which are both majority-owned.

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