Toyota and Fuji Heavy, the parent company of Subaru, are currently negotiating to have Fuji produce about 100,000 Toyota vehicles annually in the United States in 2007 or later, negotiation sources said Friday, according to Kyodo News. The two companies, which formed a partnership in October, are expected to reach an agreement on the first portion of the order by the end of the year, the sources said. The two companies also recently agreed to cooperate on a gas-electric hybrid version of the Subaru Legacy passenger car. Toyota also plans to outsource the full redesign of a “sporty subcompact� to Subaru.
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