The rumored Toyota and Subaru "new deal" has been announced, with Toyota increasing their ownership of FHI from 8.7 percent to 16.5 percent. Also part of the package is the announcement that Daihatsu will be involved.

The Daihatsu tie-in is somewhat of a surprise, but it really shouldn't be. They've been involved with Toyota for quite some time, and have recently supplied Subaru with a new 1.3L Justy for the European market.

Here's FHI's press release.

Here's AutoObserver's take: Toyota, Daihatsu and Subaru Join Forces on Product Development, Vehicle Sharing

New images of the previously posted Subaru G4e concept (2007 Tokyo Auto Show Preview: Subaru G4e EV concept) have shown up on the Net.

The more I see this car, the more I like it—and I do see a "Subaru look" emerging here. The front hints at what we see in the new Impreza. My feeling is that the front of the new Impreza, while pretty good, is not fully resolved. The STI, of all the new Impreza models, is the best looking, but it too could be better. This G4e appears to be a nice evolution of what's been started with the Impreza.

Subaru really needs a unique model in the 1500cc class. Give this car the JDM/Euro1500cc boxer engine and AWD, and I bet it would compete nicely with the likes of the Honda Fit.

More images here and here.