Toyota and Subaru to collaborate

Toyota and Subaru have announced that the two will jointly develop a new platform for all-electric midsize and large passenger vehicles. The two will also collaborate on a new all-electric SUV that will be sold under both brands.

The two manufacturers will bring together their respective strengths in different fields under this collaboration - Toyota has experience in vehicle electrification technologies and Subaru brings its expertise on all-wheel-drive tech to the table.

A business collaboration between Toyota and Subaru in 2005 has seen cooperation between the two in various fields that include development, production, and sales. This collaboration led to the launch of the jointly developed rear-wheel-drive Toyota 86, Subaru BRZ in 2012 and Subaru's Crosstek Hybrid original plug-in hybrid electric vehicle (HEV).

"To respond with a sense of speed to the diversifying needs of these markets and to multiple challenges, both Subaru and Toyota believe that it is necessary to pursue a business model that goes beyond convention, crossing over industrial boundaries together with various types of other entities that share their aspirations," said the car makers in a statement. 

Toyota is looking to partnerships with rival automakers and tech firms to reduce its capital outlay for developing these new technologies. In April, it announced it would supply other automakers with its hybrid technology, an area it has led since it pioneered the Prius in 1997.

While the Japanese automaker has led in technologies for hybrid and fuel cell vehicles, it has trailed behind rivals such as Nissan, Volkswagen and Tesla in bringing fully electric vehicles to showrooms.