Fans of the 86 and BRZ rejoice! Toyota and Subaru have officially confirmed that there will be a next-generation model of the Toyobaru twins.

This comes after Toyota Motor Corporation and Subaru Corporation recently agreed on a new business and capital alliance. Aimed at further developing and strengthening their long-term partnership, the two automakers have agreed to include contract production by Subaru of Toyota vehicles, supply Toyota vehicles to Subaru, as well as the development of the next-generation Toyota 86 and Subaru BRZ.

To further deepen their ties, Toyota will increase its equity stake in Subaru. Meanwhile, Subaru will acquire additional shares in Toyota. From Toyota's current 16.83% share, the company has bought 3.17%, bringing Toyota's total share to 20%. This translates to Toyota having 20% of voting rights in Subaru. As for Subaru itself, the acquisition of new shares will translate to up to JPY 80 billion (about Php 33.674 billion) of monetary fund.

Toyota, Subaru confirm next-generation 86 / BRZ is underway image

Other details in the new business plan between the two automakers also include:

-Strengthening of the development of all-wheel drive models

-Expanding the scope of partnership in ever-changing times

-Expand the use of the Toyota Hybrid System beyond the Crosstrek (XV) Hybrid

-Technical collaboration in connected vehicles and autonomous driving technologies

“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,” said Akio Toyoda, president of Toyota Motor Corporation.

On the other hand, Tomomi Nakamura, Subaru President, said that by taking the relationship one step further, they will accelerate their shared aspiration of 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,” added Nakamura.

Toyota, Subaru confirm next-generation 86 / BRZ is underway image

Exact details as to what the next-gen 86 / BRZ remains to be seen. However, based on a report last week, the rear-wheel drive sports coupe could get a bigger engine under the hood. It will supposedly feature the 2.4-liter Boxer engine from the three-row Ascent. However, it will reportedly not benefit from forced induction, meaning it will only be naturally-aspirated like the current model.

A concept or prototype version of the all-new Toyota 86 / Subaru BRZ could make their debut at this year's Tokyo Motor Show. Production versions of the all-new coupes could be revealed at around 2020 or before 2021.