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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.

Subaru Viziv Tourer Concept brings back the WRX wagon in Geneva

Last month, we ran a dimly-lit teaser image depicting the taillight of the new Subaru Viziv Tourer concept, slated for a Geneva Motor Show reveal. Now the wraps have come off the handsomely bronze concept, and it all looks good for a future WRX wagon design. The second-generation wagon was replaced by a hatchback variant, so there hasn't been a WRX wagon for 10 years now. The Viziv Tourer is a welcome Subaru return to longer roofs in this segment, albeit with slight crossover flavors. A production version is still expected for a 2020 launch. The taillights cut into wide wheel arches, but the sides are slightly less bulging than with the Viziv Performance STI Concept shown at the Tokyo Auto Salon earlier this year: If you get your ruler out, the Tourer is 20mm narrower. It all looks very production ready, just lacking door handles and side mirrors — and perhaps it could use some slightly bigger headlights. The concept's glasshouse is tinted heavily enough not to reveal anything from the interior. Subaru says the Global Platform underpinning the Viziv and its Tourer sibling includes the combination of Subaru's Symmetrical AWD and a boxer engine, so the core Subaru values are still present. There should be EyeSight advanced driver assists introduced in the production car, but the performance variants are likely to focus on "active enjoyment of driving," as Subaru politely puts it. Related Video: Featured Gallery Subaru Viziv Tourer Concept: Geneva 2018 View 11 Photos Related Gallery Subaru VIZIV Tourer concept View 9 Photos Image Credit: Live photos copyright 2018 Drew Phillips / Autoblog.com Geneva Motor Show Subaru Wagon Concept Cars Future Vehicles Performance 2018 Geneva Motor Show subaru viziv

Subaru broke its own Isle of Man record with a 550-hp WRX STI

Well, they did it. Subaru of America, Prodrive, and driver Mark Higgins set out to break their own record on the Isle of Man's Snaefell Mountain Course, and the attempt was a success. Higgins covered the 37-mile course in the 2016 WRX STI Time Attack car in 17 minutes, 35 seconds. That's an average speed of 128.73 mph. Average. In a car. Higgins set the previous record, 19:26 at 116.47 mph, in a more-stock STI. He and Subaru of America have been bringing cars to the site of the motorcycle race for years now, setting automotive records as all along, but this one is going to be pretty tough to top. Subaru Prodrive Isle of Man View 4 Photos It comes pretty close to the overall lap record for the course, which was set over the weekend by Michael Dunlop. The rider set a 16-minute, 58.254-second lap in the RST Superbike TT, averaging about 133 mph. The fact the Subaru comes so close to the best bike time is pretty amazing. This year's Isle of Man TT weekend was marked by the deaths of two riders. Fatalities are a regular occurrence at the historic race around the island, but it continues to be held year after year with hundreds of participants. Related Video: Featured Gallery 2016 Subaru WRX STI Time Attack Isle of Man View 22 Photos Motorsports Subaru