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Subaru profits fall by half last year among recall maladies

Subaru took a financial beating last year, according to its freshly released earnings report. During the full fiscal year, which ended March 31, the carmaker's operating profits effectively halved. Net income dropped 33% to 147.81 billion yen, or $1.33 billion, and revenue fell 2.2% to 3.16 trillion yen ($28.5 billion). Subaru states that its operating income declined by 48.5% to 195.5 billion yen, or to about $1.78 billion. According to Subaru, this was not only due to a decrease in sales, but also due to recall campaigns. Total production decreased nearly 6% to 989,000 units, and production stoppages at the Gunma plant were partially to blame for that — but Impreza, XV and Levorg sales also sank. The redesigned Forester did start out well in the summer, but sales in the first half of 2018 were more modest with the outgoing generation still in the showrooms. The Gunma manufacturing plant, Subaru's sole factory in Japan, ground to a halt in January 2019 to remedy issues with Forester, Crosstrek and Impreza electric power steering units, and that cost Subaru nearly 10 days of production, corresponding to around 30,000 vehicles. Earlier, there was a 500,000-vehicle recall in Japan due to fraudulent final inspections. Automotive News also lists other recent Subaru maladies, such as a low-fuel warning recall and stop-sale for all U.S-market Outbacks and Legacys, and the earlier, global recall to repair valve springs on the boxer engines of 411,000 vehicles. This particular recall hasn't been problem-free, as there have been cases where subsequent engine failures on BRZ models have been suspected of having been caused by slapdash recall work. There is also a new, large-scale recall in the horizon for Subaru, as a brake light issue on 2008-2017 vehicles necessitates the recall of some 2.3 million vehicles. However, it's not all bleak for Subaru, as U.S. sales are going strong. The carmaker predicts 2019 will be the 11th straight record year, and U.S. retail sales climbed 7.7 percent in April, which was the 89th consecutive month with increased sales. But still, not all Subaru markets are equal: On the North American market, Subaru sold 717,000 vehicles during the past fiscal year, an enormous percentage of its total sales. News Source: Subaru via Automotive News Plants/Manufacturing Recalls Subaru

Subaru recalls WRX and Forester 2.0XT for turbo intake problem

The Basics: Subaru will recall 18,200 examples of the 2015-2016 WRX and Forester 2.0XT. The WRX's have production dates between April 10, 2015, and October 21, 2015, and the Foresters come from April 10, 2015, to October 20, 2015. The Problem: The turbocharger intake duct can crack, which could cause the engine to run rough or stall. According to Subaru, this problem happens because a supplier used an incorrect material for a specific production lot of parts. Accidents/Injuries: None reported. The Fix: Dealers will inspect the turbocharger air intake duct. If the part is from the affected lot, then owners get a replacement. If you own one: Subaru hasn't yet told the National Highway Traffic Safety Administration when this recall would begin. RECALL Subject : Turbocharger Intake Duct Crack may cause Stall Report Receipt Date: MAR 21, 2016 NHTSA Campaign Number: 16V162000 Component(s): ENGINE AND ENGINE COOLING Potential Number of Units Affected: 18,200 All Products Associated with this Recall Vehicle Make Model Model Year(s) SUBARU FORESTER 2015-2016 SUBARU WRX 2015-2016 Details Manufacturer: Subaru of America, Inc. SUMMARY: Subaru of America, Inc. (Subaru) is recalling certain model year 2015-2016 WRX vehicles manufactured April 10, 2015, to October 21, 2015, and Forester 2.0XT vehicles manufactured April 10, 2015, to October 20, 2015. The turbocharger air intake duct may crack and possibly result in an engine stall. CONSEQUENCE: An engine stall increases the risk of a crash. REMEDY: Subaru will notify owners, and dealers will inspect the turbocharger air intake duct, and replace it as necessary, free of charge, depending on the lot number found on the duct. The manufacturer has not yet provided a notification schedule. Owners may contact Subaru customer service at 1-800-782-2783. Subaru's number for this recall is WTA-62. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov. Related Video:

10 automakers shack up in Detroit hotel to talk Takata airbags

Since Takata has decided not to take the lead concerning potential issues with its airbag inflators, the automakers have. Perhaps that's unsurprising, since it's the automakers, not Takata, that will take a beating on the dealership floor if consumers decide its models are a health hazards. The Detroit News reports that Toyota, Honda, General Motors, Ford, Chrysler, Mazda, BMW, Nissan, Mitsubishi and Subaru met in a hotel conference room near the Detroit Metropolitan Airport last week to sort out a way to understand the technical issues involved. So far, faulty airbag inflators have been ruled the cause of five deaths and 50 injuries around the world, but neither Takata nor investigators understands exactly why the inflators are malfunctioning. The National Highway Traffic Safety Administration recently asked Takata to issue a national recall, Takata declined, citing a minuscule failure rate and the fact that it's still investigating the issue. Toyota and Honda then made an industry-wide appeal for "a coordinated, comprehensive testing program" that would pinpoint the problem inflators and get them replaced, and that's what the Detroit meeting was about. Numerous issues, however, will make this a long row to hoe: simply getting the parts to replace the nearly 20 million inflators in cars recalled around the world so far - even working with other suppliers - will take a years, but more importantly, no one knows if the replacement inflators currently being installed will suffer the same issue. Answers will hopefully come quickly with Takata, the ten automakers and NHTSA all independently investigating the problem.