This buzz/news has been around for months now, with initial rumors about the resurrection of the famed AE86/Corolla GT and the news of co-development between Subaru and Toyota. Now, when two of my favorite auto makers tie-up, I’ll definitely be watching out for developments and the latest is that they’re confirming it. 1) Toyota upped its stakes in Subaru’s parent company and 2) Subaru and Toyota will be developing a sports car.

And it would be back to basics - a stripped-down two-seater with RWD. And since we have two great automakers merging technologies here, expect to have some amazing stuff here. The Impreza will be used as basis for this car with the boxer engine as probably the core of this car as it will be using the WRX’s turbocharged 2.5-litre motor.

What I’m not too sure about is whether this one they’re building will be the one dubbed as the resurrected GT. But by the looks of it, this could be highly likely.

Oh man, this is surely interesting news. Imagine what these companies could to build economical cars with performance that can shame what their European and American counterparts. How about Daihatsu (partly owned by Toyota) kei cars being slapped on with Subie technology.

Source: Top Speed