Toyota Motor Corp. and Subaru Corp. said Thursday they have agreed to jointly develop an electric sports utility vehicle to be sold under each company's brand.
The two automakers said they will co-develop a platform dedicated to battery electric vehicles for midsize and large passenger cars. They plan to combine their strengths, including Subaru's all-wheel-drive technologies and Toyota's know-how in vehicle electrification.
The two companies aim to start selling the co-developed vehicle by the mid-2020s in the United States and other major auto markets, sources close to the matter said.
Toyota and Subaru have been collaborating in development, production and sales since 2005. As part of their cooperation, they began selling their jointly developed sports car, branded by Toyota as the 86 and Subaru the BRZ, in both the domestic market and in the U.S. in 2012.
The latest move comes as automakers have been pursuing car connectivity, autonomous or assisted driving, new mobility or car-sharing and electric powertrains and components.
"Both Subaru and Toyota are required to conduct technological development with a sense of speed across a broader-than-ever spectrum of initiatives," the two companies said in a statement.