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New reports have emerged from Japan confirming that Toyota is working on a new low cost sports car scheduled to go on sale before the end of the decade and priced around two million yen (US$16,780). Toyota will build the car with help from Fuji Heavy Industries (Subaru’s parent company), who the Asahi newspaper reports will be providing one of its trademark boxer engines. Toyota bought a small 8.7% stake in Fuji back in 2005 and has since supplied it with small cars built by its Daihatsu subsidiary. This new project will see Fuji return the favor with the supply of a 2.0L horizontally opposed engine, which was chosen because of its lower center of gravity, low cost and smoothness.

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Confirmed Toyota Using Subaru Technology For Sports Car

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