Riding the trendy wave of being economically and environmentally minded, Fuji Heavy Industries, parent of the Subaru carmaker, is currently seeking a diesel engine to be placed in its flagship model for a 2007 launch in Europe. The diesel engine decision comes shortly after Subaru already reached an agreement with Toyota to gain access to their hybrid technology. "Now that we have this arrangement with Toyota, diesel engine development and production are going to be our priority," Chief Executive Kyoji Takenaka stated. He further added that fuel-efficient diesel engines powering half of Europe's cars were also gaining significant drive in major markets such as the United States and China.

Target release of both new engine configurations is marked for the end of 2007 or the beginning of 2008. Its compatibility with the renowned all wheel drive system Subaru is known for will be a core focus during the implementation. It has to be integral; over two-thirds of the company's offerings are equipped with all wheel drive. First placement is set to be in the Subaru Legacy - a solid sales performer.

In the year 2010, Subaru's goal is to have over half of the vehicles distributed in Europe powered by efficient diesel technology. The diesel powertrain is also hoped to comprise of 10 to 20 percent of all of their car sales in the United States and Japan. Gasoline-electric hybrid motors will be in the suite of choices after the diesel launch has been completed.