Toyota May License Hybrid Technology to Subaru

It should be mentioned that Toyota also licenses part of its hybrid technology to Ford Motor Company for use in its Escape

Toyota also licenses part of its hybrid technology to Ford Motor Company for use in its Escape Hybrid, only because the Ford developed system was too close to what Toyota previously developed. (Photo: Ford Motor Company of Canada)

Hybrid, although Ford made it quite clear that while it pays Toyota for the use of a specific part, the part was developed by its in-house alternative drivetrain team and that, due to the component's close similarity to a part Toyota developed, it only pays the Japanese automaker to uphold patent requirements.

Either way, Toyota is making money because it was first with the majority of new full-hybrid component technologies, which are now becoming the standards for a new industry. With Nissan and now Ford as strategic partners, willing or not, the addition of Subaru would be a major blow to automakers such as GM and DaimlerChrysler attempting to start out on their own.

A deal between the two Japanese companies would underscore Toyota's dominance in the genre even more because Subaru would be opting

If Subaru goes ahead with Toyota's technology, it will be at the expense of the less efficient mild-hybrid system developed by General Motors, its largest shareholder. (Photo: Subaru Canada)

for its technology over the less efficient mild-hybrid system developed by General Motors, its largest shareholder, and often, strategic manufacturing partner.

What's more, the full-hybrid system GM is to develop with DCX is expected to be better suited to larger vehicles.

But a cooperative deal for hybrid development and manufacture isn't a closed case. A Fuji Heavy Industries spokesperson commented that Subaru was still studying all that joining forces with a heavyweight like Toyota might do to its competitive edge.