The guessing game ended when a new report said that both Toyota and Subaru will be marketing in the U.S. but the new sports coupe will not be wearing the Toyota badge. According to CarScoop, the new sports coupe will be sporting the Toyota’s Scion emblem and will be released in the U.S. as the new Scion tC—a compact car introduced by Toyota in 2004, which is specifically designed to appeal to the Generation Y. It has been confirmed that the new Toyota/Subaru coupe will arrive in the U.S. sometime in 2010 or early 2011. It will be Scion’s first rear-drive model.

Rumor has it that Scion tC sales might plummet because of the new Toyota/Subaru coupe, which dons the Scion emblem as the next Scion tC instead of being sold as two, almost identical, models.

The Subaru version comes with an optional 4-wheel drive system and a turbocharged engine with 300 horsepower. However, the tC will stick with the 2.0 liter four-cylinder boxer engine producing 200 horsepower, this is so to keep the value prices of the Scion models.