Toyota and Subaru to work on B-segment car

subaru_stella_white.jpg

Subaru has had enormous success with their recent small car, the Subaru Stella in Japan. Subaru had originally set a target for 5,000 units per month in orders for the Stella, but it managed to surpass that goal within it’s first week on the market, clocking up 5,438 orders by June 20th 2006. This shows a shift in the automotive industry particularly in Japan towards small K-cars or superminis. The Subaru Stella comes with 660cc inline-4 engines options either in normally aspirated or supercharged form. This engine is mated to an i-CVT (intelligent continuously variable transmission) gearbox.

The soaring gas prices are likely to set the world purchasing trends rolling towards smaller cars as well. Toyota and Subaru are now jointly developing a new B-segment small car, which will debut likely in the year 2008. The car will be built by Toyota but will be marketed under the Subaru badge, likely in the European market only.

The Star reported recently that vendors have urged the Malaysian Government to limit incentives for CBU vehicles of over 3,000cc. A local motoring analyst said the entry of more CBU vehicles might have a negative impact on parts vendors in the long term as the industry matures to produce more high-powered vehicles. I disagree with this local motoring analyst and think this is highly unlikely, since purchasing trends have actually been moving towards smaller cars with better fuel economy.

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Paul Tan

After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history.

 

Comments

  • avanza (Member) on Aug 23, 2006 at 11:54 pm

    With the rising cost of fossil fuel, the world should be going for renewable fuel like biodiesel instead of making SMALL crappy cars.

    Malaysia with it's abundance supply of palm oil, should really be developing diesel engines that run on palm oil. Forget the CamPro engine; it's a crappy engine anyway, not even VVT. Hmm… can't count on Petronas to produce a biodiesel engine, can we? But then again Petronas is the govt. So should the govt push for biodiesel technology? Interesting dilema.

    For sure the oil companies will fight biodiesel technology. But Malaysia will stand to gain with our vast supply of palm oil.

    Imaging, running out of gas and going to a sundry shop to get a bottle of 'minyak masak'. Haha.

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  • maibatsu_thunder (Member) on Aug 24, 2006 at 1:06 am

    Who is this analyst, I wonder? Has this analyst compared:

    a) The Number of CKD cars sold per annum, which rely on local parts? Not forgetting the Malaysian govt. recognises 'local' when applying duty as meaning 'FROM ASEAN', and it doesn't meal local parts means Made In Malaysia!

    b) The Number of CBU cars sold per annum.

    Sometimes I wonder … what do they mean by more CBU vehicles? How much is MORE? If you don't manufacture an equivalent of lets say, a Mercedes-Benz S500, or a Tesla Motors car, then is it OK to block CBU versions of those cars?

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  • drM (Member) on Aug 24, 2006 at 1:10 am

    bring on the Subaru Stella. nice design though..but, kinda boxy a bit…i though Subaru is all about performance and style. enough on that.

    limiting incentives for 3,000 cc and above cars. i dont think that is a smart move. u see, those cars really bring in such high amount of profits for the nation. Plus, people buy those cars. I dont think we need to 'attack', instead we should act 'defensively'. The goverment should left the customers the final say, not 'deciding' for the people. You know, people can get marah2…

    Lowering the taxes on cars can be one of the thinkable solution.

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  • rexis (Member) on Aug 24, 2006 at 1:11 am

    Actually when we said biodiesel, means we have to convert the minyak masak to methyl ester, which has similar charateristic as diesel fuel. But it is possible to pour minyak masak into your diesel car to run, just that you need to do some modification on it like adding heater to your minyak masak tank and have another tank of diesel for easy starting and off engine.

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  • motberg (Member) on Aug 24, 2006 at 1:28 am

    forget biodiesel, diesel, petrol, hybrid, etc… use good old water from the tap!! http://www.waterpoweredcar.com/
    Anyone want to build the first prototype? hehehe

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  • cbljkkj (Member) on Aug 24, 2006 at 1:29 am

    I think the only reason why they say that is to urge buyers to buy smaller displacement car e.g our locally produced cars. Naturally they would complain because no Malaysian car company is producing 3,000 CC's and above and may jeopardise their sales.

    Personally, I view CBU units that have a displacement below or above 3,000 CC's a challenge to the local car industry. This is to provide the local car industry some healthy competition and to remind them to keep on their feet so to speak and no slack off and worry not about the competition.

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  • fookeatmin1989 (Member) on Aug 24, 2006 at 2:40 am

    One thing we have to remember is that Consumer dictates the market offerings…not the market which was manipulated by some 'people' blatantly want profits only…..

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  • albagmane (Member) on Aug 24, 2006 at 3:51 am

    oh… two big giants… wat will they come out with?

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  • matmoto_5125 (Member) on Aug 24, 2006 at 4:14 am

    a boxy-box car.lol…

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  • szw (Member) on Aug 24, 2006 at 4:51 am

    unstable

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  • Joe Ooi (Member) on Aug 24, 2006 at 5:28 am

    Just like our Perodua's Kenari "facelift" with boxy line!

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  • raybrig85 (Member) on Aug 24, 2006 at 6:17 am

    joe…i think mbe this will link also to perodua kenari…

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  • KingKong (Member) on Aug 24, 2006 at 6:24 am

    Paul,

    Last October Toyota bought the 8.7% stake owned by General Motors in Fuji Heavy Industries, the owner of Subaru. Now Toyota the biggest single shareholder in Fuji Heavy Industries.

    This will give more benefit to Subaru because Fuji also abandoning plans to build some components for its upcoming Legacy hybrid, and will instead buy them from Toyota.

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  • mitlanevo (Member) on Aug 24, 2006 at 8:38 am

    petrol, diesel, biodiesel, palm oil, cooking oil or whatever, our very own Proton Juara is a true disaster, just think about it…….

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  • asimo (Member) on Aug 24, 2006 at 8:51 am

    another juara….

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  • Whopper (Member) on Aug 24, 2006 at 5:53 pm

    Hmmm….rebadged Daihatsu Move ????

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  • engtaokia (Member) on Aug 24, 2006 at 6:17 pm

    time to sell my Kenari and move to this one..

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  • osh_kosh (Member) on Aug 24, 2006 at 9:44 pm

    actually biodiesel from palm oil had succesfully being produce by our researcher long time ago.. but at that time the cost for this fuel is much more expensive than diesel.. that's why our govt doesn't "push" this technology to the market back then.. but now, i think they've to re-think & refine the technology to help the 'rakyat'.. if not now, when?

    this stella looks like kenari to me :)

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