TOKYO -- Toyota plans to raise its stake in Subaru to more than 20 percent from around 17 percent now, a deal that would also see Subaru invest in Japan's top automaker, two people with direct knowledge of the matter told Reuters.
Toyota's investment is likely to cost more than 70 billion yen ($650 million) based on Subaru's stock market value, said the Nikkei business daily, which first reported the news.
Subaru is likely to reciprocate with a stake in Toyota that would roughly equal the value of Toyota's additional investment, one of the people told Reuters.
Subaru is particularly strong in SUV strength and all-wheel-drive technology. The two automakers in June said they planned to jointly develop an electric SUV on a platform produced together, to split costs.
Toyota is by far the larger manufacturer, with 10.6 million cars and trucks produced in 2018. Subaru built 1 million vehicles last year, a decline of 5 percent and the first drop in seven years.