Toyota raising its stake in Subaru to 20%, creating stronger bond in more & more competitive industry

02/28/2020

Posted by: 234DRIVE x NAIJAUTO.COM

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This article would help readers understand why Toyota Motor Corporations joined forces with Subaru Corporations for the joint production of cars and this is a wise choice!

Toyota has been affiliating with Subaru for over 10 years now but on the 6th of February 2020, Toyota increased its stake in Subaru Corp. from 16% to 20% to bolster their partnership.

The-Toyota-GT86-and-the-Subaru-BRZ-First-cars-Subaru-and-Toyota-jointly-produced

A handshake of a commercial and technological success

In 2011, Toyota and Subaru jointly developed the Subaru BRZ and the Toyota 86 which were both 2-door fastback performance coupes that used a Subaru type boxer engine. This just tells us that Toyota has more to gain from this merger in terms of technological development because if you compare Toyota to Subaru, you will observe how Subaru is advanced in terms of technology.

Furthermore, Subaru is the only Japanese automaker that is constantly producing cars with flat engines and all-wheel-drive systems, which has always been their strength since 1971. You might have known this fact before but let me repeat it as it is appealing to many car buyers: flat engines reduce the centre of gravity of a car and also enhances the performance by reducing body roll. On the other hand, Toyota produces mostly cars with regular engines and the bulk of their cars don't appeal to lovers of better-performing cars.

>>> Related post: Toyota announces huge ₦126billion investment on Flying VOTL cars

Subaru-forester-maneuver-through-mud 

Subaru cars have been always famous for its technology

Now that the two automakers want to jointly develop different car models, it will be easier for Subaru's alternative automobile production technology to go around the world because Toyota is the most commercially successful automaker in the history of cars.

This merger will prepare Toyota and Subaru for the next era of automobile production like the development of electric vehicles that Toyota has already embarked on. Electric vehicles always need an all-wheel-drive system for better performance.

They are also going to be developing cars that will use hydrogen fuel cells and lastly, development of autonomous/self-driving cars with Subaru's safety feature (eye-sight). Toyota really needs an ally if it would successfully go through the next era in automobile production.

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Crank - the head of content for 234DRIVE is a mechanic/car enthusiast/car vlogger that writes and creates relatable motoring experiences. Whenever he lays his hands on any car, he reviews them in depth. He calls himself the 'Educative Car Guy'.

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