Toyota and Subaru maker Fuji Heavy Industries are talking about developing a low-cost sports car targeting younger drivers, a Japanese newspaper reported on Friday.

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The new sports car would likely be sold by Toyota using a horizontally opposed engine developed by Fuji Heavy, the Asahi said, according to the Associated Press (AP).


The car would have a relatively low price tag of under 2m yen ($US16,780) to attract younger drivers, Asahi said.


AP noted that Toyota acquired a 8.7% stake in Fuji Heavy in October 2005 [and it now shares its US plant to build the strong-selling Camry].


Both companies declined to comment to the news agency but spokesmen did say they were in talks on several possible collaborations.

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