Toyota and Subaru Creating Electric SUV

We already knew Toyota and Mazda are working on a joint electric vehicle platform, but now it’s been revealed Toyota and Subaru are doing the same thing. This shows Toyota is actually quite serious about electric cars, but the cost of developing them is high enough the company is splitting them with allies.

Admittedly, Toyota has a lot of experience with vehicle electrification, with all those hybrids it has produced. Combine that with the all-wheel-drive prowess of Subaru and what you have is one interesting-sounding SUV.

Like with the BRZ/86, Toyota and Subaru will sell their own branded version of this all-electric SUV. It’s a less-than-perfect solution to the problem of developing electric vehicles when they’re still costly and profit margins are thin to nonexistent. Unlike Tesla, which can make little to no profit quarter after quarter, investors for traditional automakers expect them to make money.

This solution is especially important for Toyota. It is now the smallest automaker in Japan, so it has the fewest resources for a project like this. While Subaru is protected by its parent company, now called Subaru Corporation, from a hostile takeover, the ground is starting to shift. We’re seeing more alliances between former allies like BMW and Mercedes-Benz. Of course, Toyota and Subaru aren’t big rivals. In fact, Toyota owns a 16.77 percent stake in Subaru, so it has every reason to ensure its success.

Source: Reuters