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Toyota and Subaru team up for sports car

Toyota and Subaru have confirmed that they are to jointly develop a small sports coupe.

The rear-wheel drive model will go on sale in the US in 2011, but sales in Europe have not been confirmed.

The car will be built by Subaru’s parent company Fuji Heavy Industries in Japan and will feature a Subaru petrol engine.

Subaru is to develop the car's platform, but exterior design will be by Toyota.

The announcement comes after Toyota announced it is to increase its stake in Fuji Heavy Industries from 8.7% to 16.5% for £150 million.

The deal will also lead to a Toyota built replacement for Subaru’s compact car, the Justy. Toyota will also be building a version of the Daihatsu Materia for Subaru.

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