Toyota to outsource redesign to Fuji Heavy

TOKYO, Nov 9, 2005; Reuters reported that Toyota Motor Corp. plans to outsource the full redesign of an existing Toyota model to Fuji Heavy Industries Ltd. (7270.T: Quote, Profile, Research) , the maker of Subaru cars, the Nihon Keizai business daily reported on Wednesday. The move comes as the world's second-largest auto maker faces severe personnel shortages amid rapid expansion of its business, the newspaper said.

The deal would also allow Fuji Heavy, now owned 8.7 percent by Toyota, to make better use of resources after it dissolved its capital ties with General Motors Corp. last month, the report said.

The vehicle to be remodeled by Fuji Heavy has yet to be decided, but a sporty subcompact is a likely candidate, it added.

A Toyota spokeswoman said Toyota and Fuji Heavy are exploring cooperation in development and production, but added that no details had been decided yet.