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Tokyo - Toyota and Fuji Heavy Industries are in discussions to develop a low-cost sports car targeting younger drivers, a news report said on Friday.
The new sports car would likely be sold by Toyota, on track to become the world's No 1 automaker by production, and carry a horizontally opposed engine developed by Fuji Heavy, according to a report in the Asahi newspaper.
The car will have a relatively low price tag of under ¥2m (US$16 780) to attract younger drivers, Asahi said.
Toyota acquired a 8.7% stake in Fuji Heavy, the manufacturer of Subaru vehicles, in October 2005.
Both companies declined comment, but spokespeople said they were in talks on several possible collaborations. - AP