A few weeks ago Subaru announced they were ending decades of minicar production in Japan. They said they just weren’t profitable.

Now that minicar factory is being used to produce a sports car jointly designed by Toyota and Fuji Heavy Industries (owner of Subaru).

It’s called the Toyota 86, or Subaru BRZ.  It’s reported to have an engine designed for lots of power and fuel economy.

The car is supposed to go on sale in Australia in June. There the car is being marketed to potential buyers with incomes of at least Australian$150,000 per year.

The car will be powered by a water cooled 2.0-litre Boxer (horizontally opposed 4 cylinder, like the old air cooled VWs)  D-4S gas (petrol) engine.   147kW (199.8 hp) and 205Nm (151 foot pounds) of torque.  Base model comes with automatic transmission, but buyers could get a six-speed manual transmission. Limited slip differential will be available, except on the base model with automatic transmission.

The cars are also planned for sale in Europe.

Will the car be sold in the United States?  Reports say Toyota will sell the car under their Scion brand, as the Scion FR-S.  Subaru will sell it as a Subaru BRZ, at a rumored starting price of U.S.$25,000.  They hope to sell at least 7,000 per year.