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The Toyota & Subaru low entry sports car is back! Some had suggested given the current climate, the project had been canned but new reports from Geneva say otherwise.

The Toybaru, as some call it, will be the first car built by Toyota and Subaru. It will feature Subaru’s famous boxer engine and be driven via the rear-wheels. Many Toyota fans are seeing it as the revival of the AE-86.

There is no official name, only that it will be a dedicated sports car with a front-engined, rear-wheel drive setup with a good deal of emphasis on handling.

When is it coming? Two years from now according to a Toyota company official at Geneva. Whether or not both Subaru and Toyota will launch the car separately and in divide the markets is still unknown. However it will launch one way or another in Europe in 2011. Australia is still unconfirmed.

The Big T sees it as the replacement for the Celica, which has been discontinued for some time. You can find additional information on the joint project here.

Should Toyota launch the car in Australia, or should it come under the Subaru umbrella? Or both?