Toyota May License Hybrid Technology to Subaru

But Japanese business daily Nihon Keizai was clear in its report that went to press on Wednesday, that spelled out that Toyota

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. (Photo: Toyota Canada)

would more than likely supply the power system to Fuji Heavy, which in return would provide Toyota with technology for lithium ion batteries.

"We are in discussions with various automakers that have expressed interest in our technology, but we cannot name any individual company," a Toyota spokesman commented.

Fuji Heavy, 20 percent of which is held by GM, would use the hybrid power system in its Legacy, Outback, new Tribeca sport utility, as well as other models available in North America. Subaru generates 35 percent of its sales in the U.S. alone, according to the Japanese daily.

Talks between Toyota President Fujio Cho and Fuji Heavy President Kyoji Takenaka are expected to take place soon.

Altogether more than 88,000 hybrid-electric vehicles sold in the U.S. during

Hybrid sales are expected to double and then some during 2005, with at least 200,000 units leaving showroom floors this year. (Photo: Trevor Hofmann, Canadian Auto Press)

2004 via Toyota, Honda and Ford - the latter only coming to market at the tail end of the year.

Hybrid sales are expected to double and then some during 2005, with at least 200,000 units leaving showroom floors this year, as long as the price of crude oil remains high.

Toyota is planning reach monthly sales that would total 300,000 hybrid vehicles sold per year by mid-decade, or by the end of 2005, not including Nissan and potential Subaru sales.