Well I'm not too shocked here. GM and Subaru are getting very heavily linked up. I know GM was showing a hybrid sport ute/sports car at the Detroit Auto Show that many thought would appear as a 2004 model in 2003. The vehicle was built on the Subaru Outback chassis and many said it would go to production that way. Although the Outback sells extremely well Fuji Heavy Industries Subaru Division is struggling globally. A GM acquisition of them either in full, or as Ford did with Mazda would be great for GM.
Not only would they get the great AWD system technology in the deal, they would get the near bullet proof Subaru boxer four out of the deal. That would be awesome for the General who has always struggled with four-cylinder power.
I think Subaru is going to have a hard time at $27,000 on the Baja unless it is marketed far, far, away from the Avalanche. The kiss of death may come from the reviews that compare it. A really good negotiator can get a 2WD Avalanche within spitting distance of $27K - and the Avalanche is vastly more truck than a four cylinder Subaru built on a car chassis.
Now if Subaru puts "brat" style rear jump seats in it - Chevrolet take notice!!!