F
Fuzzy Logic
Subaru could have diesel cars by end-2007
Mon Mar 27, 2006 3:21 PM GMT
By Chang-Ran Kim, Asia auto correspondent
TOKYO (Reuters) - Japan's Fuji Heavy Industries, the maker of Subaru cars,
is developing a diesel engine with an eye to mounting it on its flagship
model in Europe as early as the end of next year, its president said.
Chief Executive Kyoji Takenaka told a small group of reporters on Friday
that Fuji Heavy would bring the engine to production at full throttle
after agreeing last week to borrow Toyota Motor's technology for hybrid
cars.
"Because we're a small company, we had to choose between hybrid and
diesel.
"Now that we have this arrangement with Toyota, diesel engine development
and production are going to be our priority," Takenaka said, adding that
the fuel-efficient engine, which powers half of Europe's cars, was also
gathering momentum in major markets such as the United States and China.
"We're hoping to get it to market sometime around the end of 2007, or
2008," he said.
The engine would be compatible with its iconic symmetrical all-wheel-drive
system, used on about two-thirds of its vehicles. Subaru will probably
start offering the diesel option on the Legacy model, Takenaka suggested.
By 2010, about half of Subaru's European sales -- projected at 100,000
units by then -- should be fuelled by diesel, he said. Subaru sold 62,049
cars in Europe last year.
Beyond that, about one-third of Subaru's total all-wheel-drive models
would switch to diesel, Takenaka said. He predicted the powertrain would
eventually account for 10 to 20 percent of total car sales in Japan and
the United States.
To reduce investment outlays, Subaru would build the engines on the same
line as gasoline engines -- a task that was possible thanks to the unique
structure of the symmetrical AWD drivetrain, he said.
Fuji Heavy has yet to decide how specifically to proceed in developing
gasoline-electric hybrid cars using Toyota's technology, but Takenaka said
those vehicles would come to market only after the diesel products.
Last year, Toyota took an 8.7 percent stake in Fuji Heavy, replacing
General Motors Corp. <GM.N> as its biggest shareholder.
Industry watchers are keen to see how far the new alliance will go,
particularly whether Toyota will eventually boost its equity stake. Toyota
took minority stakes in mini-vehicle maker Daihatsu Motor Co. <7262.T> and
truck maker Hino Motors Ltd. <7205.T> before turning them into majority-
owned subsidiaries years later.
Takenaka said he did not envisage Fuji Heavy's becoming a full-blown
member of the Toyota group, but rather being an independent partner much
like motorcycle maker Yamaha Motor Co. <7272.T>, in which Toyota holds a
4.4 percent stake.
"We're a pretty stubborn bunch," said the former engineer.
"We never managed to blend in with Nissan Motor Co. <7201.T> or GM when we
were allied with them. We'll preserve our independence," he said.
Takenaka said, however, that Fuji Heavy had a lot to learn from Toyota,
mainly in reducing Subaru's high production costs and expediting the speed
of vehicle development.
Source <http://today.reuters.co.uk/news/newsArticle.aspx?
type=motoringSummary&storyID=2006-03-27T142122Z_01_CAS751574_RTRUKOC_0
_MOTORS-JAPAN-SUBARU.xml>
Mon Mar 27, 2006 3:21 PM GMT
By Chang-Ran Kim, Asia auto correspondent
TOKYO (Reuters) - Japan's Fuji Heavy Industries, the maker of Subaru cars,
is developing a diesel engine with an eye to mounting it on its flagship
model in Europe as early as the end of next year, its president said.
Chief Executive Kyoji Takenaka told a small group of reporters on Friday
that Fuji Heavy would bring the engine to production at full throttle
after agreeing last week to borrow Toyota Motor's technology for hybrid
cars.
"Because we're a small company, we had to choose between hybrid and
diesel.
"Now that we have this arrangement with Toyota, diesel engine development
and production are going to be our priority," Takenaka said, adding that
the fuel-efficient engine, which powers half of Europe's cars, was also
gathering momentum in major markets such as the United States and China.
"We're hoping to get it to market sometime around the end of 2007, or
2008," he said.
The engine would be compatible with its iconic symmetrical all-wheel-drive
system, used on about two-thirds of its vehicles. Subaru will probably
start offering the diesel option on the Legacy model, Takenaka suggested.
By 2010, about half of Subaru's European sales -- projected at 100,000
units by then -- should be fuelled by diesel, he said. Subaru sold 62,049
cars in Europe last year.
Beyond that, about one-third of Subaru's total all-wheel-drive models
would switch to diesel, Takenaka said. He predicted the powertrain would
eventually account for 10 to 20 percent of total car sales in Japan and
the United States.
To reduce investment outlays, Subaru would build the engines on the same
line as gasoline engines -- a task that was possible thanks to the unique
structure of the symmetrical AWD drivetrain, he said.
Fuji Heavy has yet to decide how specifically to proceed in developing
gasoline-electric hybrid cars using Toyota's technology, but Takenaka said
those vehicles would come to market only after the diesel products.
Last year, Toyota took an 8.7 percent stake in Fuji Heavy, replacing
General Motors Corp. <GM.N> as its biggest shareholder.
Industry watchers are keen to see how far the new alliance will go,
particularly whether Toyota will eventually boost its equity stake. Toyota
took minority stakes in mini-vehicle maker Daihatsu Motor Co. <7262.T> and
truck maker Hino Motors Ltd. <7205.T> before turning them into majority-
owned subsidiaries years later.
Takenaka said he did not envisage Fuji Heavy's becoming a full-blown
member of the Toyota group, but rather being an independent partner much
like motorcycle maker Yamaha Motor Co. <7272.T>, in which Toyota holds a
4.4 percent stake.
"We're a pretty stubborn bunch," said the former engineer.
"We never managed to blend in with Nissan Motor Co. <7201.T> or GM when we
were allied with them. We'll preserve our independence," he said.
Takenaka said, however, that Fuji Heavy had a lot to learn from Toyota,
mainly in reducing Subaru's high production costs and expediting the speed
of vehicle development.
Source <http://today.reuters.co.uk/news/newsArticle.aspx?
type=motoringSummary&storyID=2006-03-27T142122Z_01_CAS751574_RTRUKOC_0
_MOTORS-JAPAN-SUBARU.xml>