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Subaru, like Nissan, admits improper checks on Japan cars, expects recalls

TOKYO — Subaru on Friday said it had failed to follow proper inspection procedures for vehicles for the domestic market, an issue likely to result in a product recall and adding to a list of compliance problems at Japanese companies. The automaker said for more than 30 years, final inspections of new vehicles at its main Gunma complex north of Tokyo were sometimes conducted by inspectors who were not listed as certified technicians, violating transport ministry requirements. The automaker said it was therefore considering recalling about 255,000 vehicles including its Legacy, Forester and Impreza models produced at the complex and sold at home, at a cost of around 5 billion yen ($43.86 million). Chief Executive Officer Yasuyuki Yoshinaga at a news conference said inspectors in training for certification to sign off final checks had been approving the checks under the names of their trainers, a process the automaker followed for over 30 years without realizing it did not meet ministry requirements. "The final inspection process is very important and we acknowledge that we did not meet requirements," Yoshinaga said. "It's always been my goal to make this company good. This issue shows that we're not there yet." Subaru said it would report details of an internal investigation to the ministry on Monday, and that it needed to better communicate requirements to workers. "It's always been my goal to make this company good. This issue shows that we're not there yet." The revelation followed a similar oversight at Nissan, while Kobe Steel has been grappling with a data fabrication scandal, tarnishing Japan's reputation for quality control. Yoshinaga said the issue was discovered during an internal inspection ordered by the ministry after Nissan late last month revealed similar violations on inspections governing vehicles sold in Japan at its domestic factories. The ministry requires certified technicians to sign off on paperwork for final inspections for vehicles produced in Japan for the domestic market. The extra step does not affect product quality and is not needed for vehicles exported overseas. Toyota, Honda and other Japanese automakers on Friday said they have reported to the ministry that they found no issues with their respective inspections. Subaru shares closed down 2.6 percent on Friday after falling more than 3 percent following media reports of the improper inspections. The broader market rose 1.2 percent.

2019 Subaru Crosstrek Hybrid First Drive Review | Finally, a Subie with a plug - updated

SANTA BARBARA, Calif. — Subarus are pretty good to drive — capable, comfortable, generally affordable, interesting — and with one exception, they all offer all-wheel drive. And they're a relatively green company. The active, outdoorsy and often socially conscious drivers appreciate things like Subaru's commitment to diverting waste from landfills. But there's a fact that's been nagging many of us who love to hug dogs, trees and the occasional Subaru: there's no electric option. Subaru, an automaker small enough to get by with an efficient fleet of conventional gas vehicles, has been able to do without building a compliance car. Still, an increasing number of Americans want to be able to plug in their vehicles. For loyal Subaru fans, brand love and eco-consciousness have increasingly difficult to reconcile. That changes now, and not because of any specific regulation, but because Subaru sees the demand. By the end of this year, Subaru will be selling its first plug-in vehicle, the 2019 Crosstrek Hybrid. While Subaru has sold a Crosstrek that was a conventional hybrid before, the new 2019 Crosstrek Hybrid is Subaru's first plug-in hybrid. Sales of the previous hybrid weren't great, though, since it was expensive. Customers didn't choose to pay a premium for a few mere extra miles per gallon. Subaru hopes the extra fuel efficiency of the plug-in will increase the appeal. Even so, like Chrysler did with the Pacifica Hybrid, Subaru opted not to put "plug-in" in the name for 2019. Despite an arguable opportunity missed to set the record straight with a new and more descriptive name, there's no mistaking this thing is a PHEV. There are "Plug-In Hybrid" badges on both front fenders and the tailgate, and the door covering the SAE charging receptacle – at the rear of the driver's side, on the opposite side of the gas fuel door – is stamped with the words "PLUG-IN" writ large. While this thing looks every bit a Subaru, even if you pop the hood to take a look at the 2.0-liter boxer engine up front, the 2019 Crosstrek Hybrid borrows its PHEV technology from Toyota – more fruit of the partnership that bore the Scion FR-S and the BRZ. It has the same 8.8-kWh lithium-ion battery pack as the Prius Prime, but in the bigger, heavier Subaru it's only good for a modest 17 miles of all-electric range. If that figure is a little disappointing to you, you're not alone. We had hoped to see at least 20 miles of EV range in this thing.

West Coast labor dispute hampers Japanese automakers' US plants

The ongoing labor dispute between the International Longshore and Warehouse Union and port owners along the West Coast is starting to affect more Japanese automakers building vehicles in the US. The issue already forced Honda and Subaru to take the expensive option of airlifting some parts into the US weeks ago, and according to USA Today, Toyota and Nissan have begun doing so, as well. The choice hasn't been cheap, though, and Subaru's chief financial officer estimated that the decision cost around $60 million more per month than sending components by cargo ship. The effects continue to radiate, according to USA Today, and shortages of some models are possible. Honda is slowing production at its factories in Ohio, Indiana and Canada because the automaker doesn't have enough transmissions and electronics for some vehicles. Toyota already cut back on overtime at some factories. Nissan has only seen a small effect from the issue, though, because of its local suppliers. Dock workers and port owners have been negotiating on a new contract since last year, and the union has organized work slowdowns in response. According to USA Today, the automakers could move shipments to Canada or Mexico, but it would take longer for parts to arrive. News Source: USA TodayImage Credit: Mark Ralston / AFP / Getty Images Earnings/Financials Plants/Manufacturing UAW/Unions Honda Nissan Subaru Toyota shipping port labor dispute