Toyota CEO Katsuaki Watanabe confirmed that Toyota will be 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.

Looks like it is the remake of the famous AE86 as this is a Rwd sports car. Its been a while Toyota made a decent rear wheel sport car since the elusive Toyota Supra. The final design of the coupe will be decided in July, with production set for 2010. Hmm i guess they have a new name for it since its a hybrid of Toyota & Subaru, lets face it "Toyobaru"?

[Source:Autocar]