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Subaru recalls more cars, slashes guidance as cheating issue widens

By Naomi Tajitsu TOKYO — Subaru Corp said it would recall more vehicles sold in the Japan domestic market on new cases of inspection cheating, and cautioned that rising recall costs would lop off about a quarter from its annual profit forecast. Shares in Subaru, already reeling from a series of recalls for issues ranging from faulty components to inspection do-overs, fell 5 percent to a four-year low on Monday after news of the fresh recalls and the bleak outlook. The company, the smallest among Japan's major automakers, said it would recall around 100,000 vehicles, including its popular Impreza sedan, after discovering that final tests for components including brakes were not conducted properly. Vehicles sold overseas will not be affected. "It's unforgivable that these inspection-related issues are continuing," CEO Tomomi Nakamura said at a briefing, while repeatedly adding that the latest recall would be the last related to testing misconduct. The automaker expects to incur 6.5 billion yen ($57 million) in costs related to the latest recall. This, along with other quality-linked issues, is expected to push down Subaru's operating profit to 220 billion yen in the year to March 2019. It had previously forecast a 300 billion yen profit. Subaru posted a surprise operating loss of 25 billion yen for the three months ended September, its first time in the red for a quarter since 2009 and missing a mean forecast for a 68.46 billion yen profit from 10 analysts polled by Refinitiv. Recall-related costs were the main driver of the loss, while global sales fell 6 percent over the quarter due to weak demand in the United States — its biggest market, where overall demand has cooled since record-high sales in 2016. (Click here for an interactive version of this chart) Engine recall Last month, Subaru nearly halved its first-half operating profit view, citing higher quality-related costs. It later announced a global recall of around 400,000 vehicles, including its Forester SUV and Impreza sedan, to fix a design flaw in the engines' valve springs. That came on the heels of another series of recalls stemming from revelations last year that uncertified workers had been submitting final inspection reports for vehicles sold in Japan. That had also led to a recall of about 400,000 cars. Recalls are common in the auto industry, and automakers regularly put funds aside to pay for them.

2022 Honda Civic Si, Lincoln Corsair Grand Touring | Autoblog Podcast #708

This episode of the Autoblog Podcast features Editor-in-Chief Greg Migliore and News Editor Joel Stocksdale. They talk about cars they've been driving, including the 2022 Honda Civic Si, 2022 Lincoln Corsair Grand Touring plug-in hybrid and 2022 Subaru Ascent. After that, they spend someone's money. The subject specifically is whether a Ford Maverick is right for the person, or if they should maybe get something else. Autoblog Podcast #708 Get The Podcast Apple Podcasts – Subscribe to the Autoblog Podcast in iTunes Spotify – Subscribe to the Autoblog Podcast on Spotify RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown What we're driving2022 Honda Civic Si 2022 Lincoln Corsair Grand Touring 2022 Subaru Ascent Spend my money Feedback Email – Podcast@Autoblog.com Review the show on Apple Podcasts Autoblog is now live on your smart speakers and voice assistants with the audio Autoblog Daily Digest. Say “Hey Google, play the news from Autoblog” or "Alexa, open Autoblog" to get your favorite car website in audio form every day. A narrator will take you through the biggest stories or break down one of our comprehensive test drives. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Subaru files for S209 trademark in the U.S.

Last week, Subaru filed an application with the U.S. Patent and Trademark Organization to trademark "S209." The paperwork indicates Subaru would like to apply it to "automobiles, structural parts, and structural fittings therefor," and "floor mats for automobiles." An application doesn't mean anything, but the obvious deduction would be that Subaru is thinking about another special edition Impreza WRX STI for the U.S. market, one that brings a taste of JDM-only nomenclature our way. The S appellation is as serious to the Subaru Tecnica International division as STI is to Subaru overall. The STI boffins have rolled out these extra special modes since the S201 STI in 2000, the Japanese market reaping a new S harvest every couple of years. Our last distant visions of such were the S207 shown at the 2015 Tokyo Motor Show, and the S208 revealed last year. The 208 benefited from a bump in horsepower, from 323 hp to 329 hp and 319 pound-feet of torque, quick-ratio steering, a front strut tower brace, Bilstein dampers as part of a DampMatic II suspension, torque vectoring front and rear, 19-inch BBS wheels, Brembo brakes, a carbon roof, and an unmissable rear spoiler. None of the previous "S" models made it to the U.S. If this one does, we can only guess how Subaru will differentiate it from the hottest Impreza we've had, the recent Type RA (pictured). Our Type RA lost 68 pounds with the help of a carbon roof and spoiler, while a bag of engine mods and revised gearing helped make the most of unchanged 310 hp and 290 lb-ft from the 2.5-liter EJ25 engine. A power bump would likely be first on the wishlist for an S209, but it should be noted that the recent Japanese S cars have used the EJ207 2.0-liter boxer-four, not our 2.5-liter. As with the carmaker's home market, we'd expect an S209 to go into severely limited production. Subaru built 300 units of the S206, 400 of the S207, and 450 of the S208. Even if we do get a brawnier STI, Japan is likely to keep its power close with the WRX STI TC 380 teased last month, putting out 375 hp from a 2.0-liter turbocharged boxer-four. Still, the South-Africa-only WRX STI Diamond Edition rocked 349 hp and 342 lb-ft from its 2.5-liter, so there's a lot of headroom for a U.S. S209 to play with. If we get one, that is. Related Video: