According to the Japanese newspaper Nikkei, Subaru and Toyota are planning joint development of a hybrid SUV to be marketed by both brands, as early as 2017.
The new project is said to mate Subaru's signature horizontally-opposed engines with Toyota's proven hybrid drivetrain. No word on what size the new vehicle will be.
The hybrid vehicles will probably be manufactured at Subaru's Yajima plant in Gunma Prefecture, according to the Nikkei.
Toyota bought into Subaru's parent company, Fuji Heavy Industries, when General Motors divested its shares in 2005, and currently holds a 16.5%-interest in the firm.
As part of their joint endeavours, Subaru now builds some Toyota Camry sedans at its American plant in Indiana.