GM-Subaru CUV in '06

Subaru-Isuzu Automotive Inc. will build the new 7-passenger cross/utility vehicle under development by General Motors Corp. and partner Fuji Heavy Industries Ltd. (Subaru) beginning in 2005 as an '06 model, WAW learns. Both will get versions of the unibody sport wagons. Subaru is leading engineering and design of the all-wheel-drive vehicle with its trademark horizontally opposed engine. Subaru expects 15,000 first-year sales for the CUV model expected to sell for more than $30,000. Current plans call for SIA — Subaru's joint venture plant with Isuzu Motor Co. Ltd. in Lafayette, IN — to build it. Unclear is how Subaru Legacy and Outback, as well as the new vehicles, will roll down one line. Possible solutions include ceasing Legacy/Outback, or converting Isuzu's truck-based line over to the new models.