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Toyota-Subaru Partnership Raises Marketing Questions

Toyota-Subaru Light Sports Car (select to view enlarged photo)

Toyota-Subaru Light Sports Car Concept as Published By http://www.autocar.co.uk

Washington DC April 22, 2008; The AIADA newsletter reported that the new sports car that Subaru is making with Toyota will be a high-profile addition to the Subaru lineup. But the big question is how Subaru will differentiate its car from a Toyota-badged sister model.

Subaru is also wary of having its niche image as an all-wheel-drive specialist diluted by the rear-wheel-drive sports car. Careful marketing will be the key to success when the car debuts in late 2011, said Mat Nagato, chief of overseas sales at Subaru parent Fuji Heavy Industries.

"A potential question could be cannibalization," Nagato told Automotive News. "We may lose our longstanding territory, or we may lose the great niche brand image. The potential risk is there. We have to be very smart on marketing strategy."

Toyota and Subaru are in the elementary stages of planning the sports model. It will be a front-engine, rear-wheel-drive car powered by Subaru's horizontally opposed boxer engine. But volume, pricing, design, and engine size are still being decided

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