(autoinsidernews) - Toyota Motor, Japans biggest automaker, may supply small cars for Subaru to sell in Europe, the Yomiuri newspaper reported on Thursday. The Yomiuri said Toyota, which is the largest shareholder of Subarus parent company, Fuji Heavy Industries, could supply cars beginning as early as 2008 and will include small-car hits such as the Yaris and Aygo, reports Trend.
The move would help Fuji Heavy, which lacks a strong small car model as demand has increased for fuel efficient vehicles and will take advantage of Toyotas small-car expertise. The move will help Toyota boost volume sales.
This is the first OEM deal for Toyota and Subaru, but it is unlikely to be the last. While no plans for other regions were announced, expect Subaru to outsource production for small cars in other regions.