A new report coming from Australia indicates the Subaru BRZ might not receive a second generation.

A new report coming from Australia indicates the Subaru BRZ might not receive a second generation.

It seems the Subaru BRZ could be terminated after only one generation in the event that Toyota and BMW will deepen their collaboration. One of the reasons why Subaru got its own version of the GT 86 is because Toyota has a 20 percent stake in Subaru's parent company, Fuji Heavy Industries, but that might not happen for the second-generation GT 86 which is said to become more radical than today's car.

BMW and Toyota are working together on a high-performance sports car slotted above the GT 86 and chief engineer Tetsuya Tada says the collaboration between the two parties could be expanded to include the second-gen GT 86. The latter could end up with an alternative powertrain or an inline-four cylinder engine as a replacement for the current boxer motor. Regardless of its heart, expect some form of electrification to boost power output as well as slash fuel consumption.

Tada hinted the next GT 86 could make use of the supercapacitor technology found in the company's Le Mans TS040 Hybrid racer. In an interview to DRIVE, Tada said "maybe next generation 86 must have some kind of eco technology like racing hybrid."

Until then, a mid-cycle refresh for the Toyota GT 86 is in the works for a 2015 market release and could include a larger boxer engine or uprated intake and exhaust systems sourced from Gazoo Racing while the final drive ratio could also be altered to make the car feel livelier.

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Subaru BRZ to be discontinued after only one generation - report