Subaru STEPs on emissions

The force-fed flyer is set to disappear from the line-up at the end of December and reappear in the second half of 2006, equipped with a new 2.5lt turbo engine -- punching out a rumoured 200kW -- in lieu of the current 2.0lt unit, which puts out 190kW in manual form and 180kW when mated to the auto.

Subaru may lament the timing of the turbo Liberty's absence given that Mazda has just barged into the fray with its own turbo AWD weapon -- the 6 MPS.

However, Liberty GT fans will be catered to in the short term by a special limited-edition model that will debut at this week's Sydney motor show. Fettled by the company's performance arm -- Subaru Tecnica International (STI) -- the limited-run model is likely to sport lower, firmer suspension, a subtle bodykit and bespoke 18-inch alloys.

A normally aspirated Liberty 2.0R special edition is also set to join the range in December, and Subaru says it will become a permanent member of the line-up if buyers warm to it.

In overall terms, the news is positive for Subaru Australia -- it sold a total of 27,482 vehicles until the end of September, compared with 25,571 for the same period last year.

GM's Subaru sellout: In a shock announcement last week, GM announced it would sell its 20 per cent stake in Subaru's parent company, Fuji Heavy Industries. The GM sellout is an admission that the partnership between the two car makers has flopped.

Toyota is set to step in as Subaru's new alliance partner and it will reportedly pay about $400 million to GM for 68 million shares, equal to an 8.7 per cent stake in Fuji. This will make it the largest shareholder in the company.

Fuji effectively will buy back the rest of GM's stake in it. GM said it would sell the remainder of its Fuji stock, 89 million shares, on the open market. Fuji, meanwhile, said it will buy back 90 million of its shares from the open market.