Originally Posted by Autoblog

At a press conference in Japan today, Toyota CEO Katsuaki Watanabe finally confirmed that his company is jointly developing a pair of rear-wheel-drive sports cars with Subaru. Each brand will get its own version of the car, which will be powered by one of Subaru's boxer engines, though the engine's displacement, power output and even number of cylinders is not yet known. We're also not sure if the Subaru version will feature the brand's trademark all-wheel-drive system either as an option or standard equipment, or whether Toyota might offer AWD as well in an homage to the Celica GT4 (we hope so!).

The styling will most likely resemble the sketch that was published by Autocar yesterday, though we don't expect one car to be a rebadged version of the other. Mark your calendars for 2011, which is when the new sports cars are scheduled to arrive. They'll be riding on a brand new platform and be built in Japan at a new plant by Fuji Heavy Industries, the parent company of Subaru. Toyota also confirmed rumors this morning that it will be buying up more of Fuji, raising its stake in the company from 8.7% to 16.5%.

These RWD sports cars will mean a lot for both companies, as Subaru hasn't offered a performance coupe since the slightly odd SVX, and Toyota all but abandoned performance models after the Supra, Celica and MR2 were cancelled.

Originally Posted by Autocar.co.uk

Toyota and Subaru are joining forces to develop a sensational new sports coupé together, shown above in an Autocar image.

An inside source revealed top-secret sketches, showing that the car’s brief is to be compact, lightweight, rear drive and fast. Although the Subaru and Toyota versions of this coupé will look different from one another around the front and rear, both will be powered by Subaru’s 2.0-litre flat four engine, making this the first time that a Subaru boxer engine has powered a Toyota.

A naturally aspirated version of the petrol boxer engine with 175bhp is being considered for the base model, and there is potential for a hot 2.5-litre turbocharged model later.

This will be a car inspired by the classic rear-drive AE86 Toyota Corolla GT coupé from the 1980s, a car known for tail-happy handling. Yet beneath the skin we can expect a reworked Impreza, shortened, lightened and with a bespoke coupé body.

Subaru’s trademark four-wheel drive system will be ditched to save weight, complexity and cost. However, if the standard model is a success then later plans could include a spiritual successor to the Toyota Celica GT4, featuring the 2.5-litre turbo boxer engine and four-wheel drive.

Affordability is the priority for this so-called ‘Toyobaru’. Costs will be driven down thanks to technology sharing between the two car makers. Sources suggest that the coupé could cost as little as £10,000 (~$19,700) in Japan, but it’s likely to be closer to £20k in the UK, rising to £25k for the turbo model. Subaru will build the car at its Gunma plant in Japan, while Toyota is in charge of development.

The final design of the coupé is due to be signed off in July, with production set for 2010. Toyota, which holds an eight per cent stake in Subaru, is said to be keen to attract Japan’s disaffected youth with a Mazda MX-5 rival. In fact, an open-top derivative of this coupé could be another longer-term option.

After a launch in Japan, it’s believed the new coupé’s main market will be North America, but it should also make it to the UK. There’s a big market here for sports coupés and Toyota could benefit from an enthusiast’s car that revives the lustre of the Celica.

Originally Posted by 08LancerEVO

of course they leave the ****ty *** 08 look. they went the wrong way since 07...

Originally Posted by AznX TL

http://www.autoblog.com/photos/toyota-ft-hs-concept/
heres the concept pics.