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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.

Takata air bag recall list

The National Highway Traffic Safety Administration confirmed yesterday that 33.8 million vehicles with Takata airbags are going to be recalled. It's the largest recall in automotive history. The already record-breaking rate of automotive recalls this year shows no signs of slowing down, especially since millions of cars with defective airbags made by global supplier Takata are under ongoing scrutiny. The federal government is warning owners that inflator mechanisms in the air bags can rupture, causing metal fragments to fly out when the bags are deployed. The faulty air bags have already been blamed for multiple deaths. How do you know if your vehicle is safe? The National Highway Traffic Safety Administration released an updated list of vehicles under recall. Sometimes however, the government's website will crash and the list may not be complete. Check your VIN at the NHTSA website to make sure. The list of cars affected by the recall has not been released, but seem to span multiple models over the years for many of the automakers.

Subaru skips the Super Bowl, brings back the driving dogs

Subaru's research shows that 80 percent of owners have a pet. So the company plans to skip expensive advertising during the Super Bowl again this year in favor of being the official auto sponsor of the Puppy Bowl on Animal Planet. The canine-friendly company also has five new ads starring the Barkleys, a family of Labradors and Golden Retrievers. The commercial above titled Phone Navigation is our favorite of the group because it puts a funny spin on bad smartphone voice recognition. You can check out the other four adorable ads below. Doggie Bag has the pups dealing with an inept valet; Windshield Wiper forces them to cope with a bulldog in a car ahead; Bad Hair Day tactfully handles a rough trip to the doggy salon; and Puppy tries to help a little one get to sleep. With new spots like this practically every year, Subaru clearly has a paw on the pulse of what its customers like. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. THE RETURN OF THE BARKLEYS: SUBARU LAUNCHES NEW "DOG TESTED. DOG APPROVED." TV AD CAMPAIGN, STARRING AMERICA'S FAVORITE CANINE FAMILY Subaru's new advertising campaign brings back the Barkley family for new wave of television spots Cherry Hill, N.J. - Subaru of America, Inc. has launched its new "Dog Tested. Dog Approved." advertising campaign in celebration of the love of pets shared by the brand and its owners. The five spots showcase the Barkleys, the adorable family of dogs featured in the 2013 "Meet the Barkleys" campaign. In Subaru's newest spots, the Barkleys will take on everything from driving their Subaru around town, trying to get their kids to sleep and even dealing with other doggie drivers. The national television spots, created by Carmichael Lynch on behalf of Subaru of America, will air in the coming weeks, and all five ads will be featured on February 7 during PUPPY BOWL XII on Animal Planet, where Subaru of America will mark its sixth year as the event's Official Auto Sponsor. During the event, fans at home will be encouraged to share photos of their own pets using #PuppyBowlSubaru. The "Dog Tested.