Toyota May License Hybrid Technology to Subaru

The difference is that everyone realized at the time that Sony's Beta tapes were by far superior to VHS, but due to the tremendous

Best known for its Outback crossover wagon and WRX rally car, a hybrid vehicle would suit Subaru's earthy image. (Photo: Subaru Canada)

proliferation of VHS, Beta became more challenging to find in local video rental stores, forcing those who invested in the technology to give it up and move to what was then jokingly referred to as the "dark side" - a precursor to the Microsoft vs. Apple gambit that played out soon after.

While Toyota may be rich and powerful like Microsoft, the leader among carmakers when overall capitalization is the quantifier, its image has been made bright and rosy due to its efforts in making the world a greener place via the proliferation of eco-friendly hybrid technology.

So how does Subaru-maker Fuji Heavy Industries Ltd. fit into the scenario? The automaker, best known for its Outback crossover

Although formal talks with Toyota have yet to begin, there is a "very high chance" that Toyota's hybrid system will be the optimal match for Subaru vehicles according to an official within the company. (Photo: Subaru Canada)

wagon and WRX rally car, may work together with Toyota to build a hybrid vehicle.

A spokesman working for Fuji Heavy Industries commented that although the company had not entered formal talks with Toyota, there was a "very high chance" that Toyota's hybrid system would be the optimal match for Subaru vehicles.

Such a deal, which most likely would be set up similarly to that orchestrated with Nissan, would help Toyota reduce the cost of manufacturing hybrid components, and by so doing would reduce the price of all hybrid cars using Toyota's system.