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Fuji Heavy Industries founded its automotive division, Subaru, in 1953. Unlike most automotive companies, the car company is not named after its founder. Instead, Subaru is the Japanese name for the Pleiades star cluster.

The first Subaru, the P1, debuted in 1954. Subaru, through Fuji, became involved with other automakers and markets when Nissan purchased a stake in the company in 1968. Later, Nissan would sell its shares to General Motors in 1999. Both companies utilized FHI's engine and all-wheel drive technology.

Besides the Subaru P1, other well-known automobiles sold in the U.S. include the Subaru BRAT (for Bi-drive Recreational
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