Subaru may sell rebadged small Toyotas

Toyota may supply Subaru with small cars for the Subaru-brand car maker to sell in Europe, the Yomiuri newspaper reported on Thursday.
The Yomiuri said Toyota, which is Fuji Heavy's largest shareholder, is looking at providing cars based on its Yaris model and on another model sold only in Europe under an original equipment manufacturing deal from as early as 2008.
The move would help Fuji Heavy, which lacks a strong small car model in a market where cars must meet new tighter emission standards. It would also help Toyota cut costs by boosting volume sales.
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