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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.

2019 Subaru Forester Long-Term Update | It's gold wheel time!

Our long-term 2019 Subaru Forester is heading into the new year with a new set of shoes. Subaru’s all-wheel-drive system works perfectly fine, but all-wheel power is no replacement for a set of winter tires. And so our search for winter rubber began. However, the search didnÂ’t take that long, as a set of wheels and tires that fit our Forester happened to be laying around Autoblog HQ collecting dust. The wheels just so happened to be lightweight, gold 17-inch Sparco wheels we had previously fitted to our 2015 Subaru WRX long-term tester. Imagine our glee when we pulled these bad boys out of storage.  ItÂ’s only fitting that the blue Subaru in our long-term test fleet is also fitted with gold wheels as a tribute to all the gold-wheeled Subaru rally legends. The new Forester is nothing like a WRX or STI, but this setup has us smiling every time we walk out to the car. Take a nice, long scroll through the gallery above. We canÂ’t stop obsessing over how much better they make the new Forester look. Maybe a special edition package Â… just a thought, Subaru. Mounted on these wheels are new Michelin X-Ice winter tires. WeÂ’ve already driven it through a couple snowfalls in the midwest region, and the tires make this crossover a nearly unstoppable winter force. We hope to get some serious snow this winter that allows us to really take advantage of the new tires and the ForesterÂ’s high 8.7-inch ground clearance. More on that and the ForesterÂ’s performance to come. Unfortunately, the spare set of wheels we had lying around didnÂ’t have tire pressure monitoring sensors for the Forester sitting next to them. Until the little yellow light in the dash starts annoying us, weÂ’re going to forego the expense of buying a new TPMS at the Subaru dealer — we imagine many owners skip the extra $150 or so for the sensors and check their tire pressure the old-fashioned way with winter wheels, too. After all, the tire pressure gauge still exists, and it works splendidly. Watch out for another Forester update soon, as we get into some of the things weÂ’ve liked and disliked over the past few months. Related video:

Subaru pairs with Liberty Mutual for built-in driving monitor app

A new app for Subaru's Starlink infotainment will give owners easy access to Liberty Mutual's RightTrack usage-based insurance program later in the year, and those that take part will be able to save up to 30 percent off their bill. Users will also get nearly realtime feedback about their driving that could make them safer behind the wheel. "RightTrack is designed to benefit drivers," Jeff Wright, vice president of usage-based insurance at Liberty Mutual, said to Autoblog. The program monitors a participating driver's behavior and looks for factors like hard acceleration or deceleration, the number of miles driven, and a journey's time of day. Users then receive a report after a trip on their smartphone or the infotainment screen about these events behind the wheel. Everyone gets a five-percent discount just for signing up for the usage-based insurance, but after 90 days the safest drivers can get the maximum discount. Liberty Mutual also doesn't increase RightTrack client's insurance rates. "This partnership combines Liberty Mutual's extensive experience and reach in usage-based insurance with Subaru and Clarion's cutting-edge connected car technology to bring RightTrack savings to consumers in new ways," Hamid Mirza, auto product manager at Liberty Mutual Insurance, said in the announcement. A 2015 study indicated that 27 percent of older drivers had privacy concerns about usage-based insurance programs, but younger people had a growing willingness to try them. The industry says that showing clients how they drive can make them safer because folks realize what they're doing wrong. Plus, many people are attracted to the potential monthly savings. The RightTrack app should be available in late spring on any Subaru with the Starlink infotainment system, company spokesman Anthony Landamia told Autoblog. Liberty Mutual plans eventually to update the software to support other helpful features like severe weather alerts, accident scene assistance, and roadside assistance. Liberty Mutual Insurance and Subaru Introduce New Technology to Promote Safe Driving and Savings on Auto Insurance RightTrack® in-vehicle app powered by Clarion Smart Access™ features new innovation in usage-based insurance for SUBARU STARLINK™ Cloud app suite BOSTON – January 4, 2016 – From commuting to work to shuttling the kids, how safe of a driver are you?