Toyota raising stake in Subaru to at least 20%, report says

Tokyo: Toyota Motor Corp is raising its stake in Subaru Corp to at least 20 per cent, the Nikkei newspaper reported, without identifying where it got the information.

Japan’s No. 1 carmaker already owns about 17 per cent of the maker of Legacy and Outback wagons, having built its stake since first making an investment in 2005. The two automakers have jointly developed automobiles since striking up their partnership.

Toyota, Volkswagen AG and other carmakers have been forging partnerships as they face an uncertain future, with new technologies and business models disrupting the $2.23 trillion global auto industry.

Toyota plans to make Subaru an equity method affiliate after raising its stake, the Nikkei said, which would make it an asset on its balance sheet and included on income statements.