About five months ago, Toyota and Subaru announced that they will deepen their ties via a new business and capital alliance. Moreover, both companies jointly announced that there will be an all-new 86 and BRZ. To make that possible, Toyota increased its equity stake in Subaru from 16.83% share to a total of 20%. Meanwhile, Subaru acquired new shares in Toyota which equated up to JPY 80 billion (about PhP 34 billion) of monetary fund.

Now, Subaru Corporation has announced that it has joined up with Toyota Motor Corporation. While the announcement of the deepening of ties was made way back in September 2019, it was only made officially recently. With it, Subaru aims to accelerate its research and development activities for next-generation technologies – inlcuding those in autonomous vehicle tech, and vehicle electrification.

But what does this mean for Subaru itself now that it's part of Toyota? While it won't be a fully-owned subsidiary, Subaru could become an affiliated company of Toyota in the long run. What may happen, however, is that Subaru will be able to tap into Toyota's hybrid technologies, as well as its D-4S system.

With Subaru planning to sell only electrified vehicles by 2030, getting to use Toyota's hybrid systems should help the company reach that goal. For now, Subaru only has the XV e-Boxer, Forester e-Boxer, as well as the XV Plug-in Hybrid. If Subaru is indeed serious in slowly phasing out their gasoline-powered cars from its global portfolio by mid-2030, they will need to make more hybrids or pure electric vehicles soon. Subaru might also get to use Toyota's D4-S system, which enables an engine to switch from direct injection to port fuel injection (and vice versa) in order to achieve better fuel economy and emissions.

Aside from being able to share hybrid technologies, Subaru's Symmetrical All-Wheel Drive system could also make its way to more Toyota vehicles in the future. Whether it's a hybrid or an all-electric vehicle, the AWD system could be used in all electrified vehicles made by Toyota or Subaru. In fact, an all-wheel electric vehicle is apparently already in the works and could come out in the not so distant future.

Despite the deepened partnership between the two companies, both Subaru and Toyota claim that they will still strive in making unique vehicles and products. Tomomi Nakamura, president of Subaru Corp. stated that they will strive to remain different from Toyota and that they will further hone the distinctive qualities that make a Subaru, a Subaru.

This change is projected to make Subaru’s business ties with Toyota even stronger, and make a contribution to its sustained growth and an increase in its corporate value over the medium and long terms.