According to Automotive News, Toyota and Subaru are hard at work on plans to co-develop a sports car under the Toyota brand. The new car will be priced under $16,900 and have an engine smaller than 2 liters.
Last week Best Car Plus magazine broke the news that Toyota is working on a new AE86 type car. In that report the magazine stated that the new small RWD car would come to market by winter of 2008. Now it according to newer reports it looks like the car will be released by 2010.
It is not certain if the car will adopt an all-wheel-drive powertrain from Subaru or if it will be rear-wheel drive like the original car. According to Motor Authority Fuji Heavy Industries (Subaru) is going to supply a 2.0L horizontally opposed engine for the car. Final output is expected to be around 120hp and the car should weigh about 1,000kg.
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