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Subaru-Toyota sporty car joint venture delayed

by Andrew Ganz

Both Toyota and Subaru have officially confirmed that their co-developed sporty compact car project has been put on hold. The two automakers had planned a rear-wheel-drive sporty two-door based on the Subaru Impreza platform that also used Subaru's boxer engine, but the project has apparently been delayed indefinitely due to the worldwide economic slump.

Toyota gained a small stake in Subaru in 2005 and the joint project had intended to fill gaps in both automakers' lineups. Toyota has lacked a sporty small car since the demise of the Celica and Subaru has been without a coupe for considerably longer. The small Toyota could have been badged a Scion, too.

Initially, the plan had been for the sporty coupe to be on sale in 2011 or 2012, but it looks like it has been delayed at least a year, if not longer, confirming earlier reports.

The plan for the Subaru to assemble Toyota Camrys in its Lafayette, Indiana, assembly plant remains on schedule, however.