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Subaru investigates possible mileage data cheating, shares drop

TOKYO — Subaru, already smarting from a vehicle inspection scandal at home, said it was now investigating whether mileage readings may have also been falsified during final checks, driving its shares down as much as 8 percent. Mileage readings, an indicator of fuel efficiency, do not fall under safety requirements. However, any proof of what would be a second instance of misconduct in as many months would taint the image of not only Subaru but also Japan's manufacturing industry, which has been rocked by a slew of scandals recently. Just last year, Mitsubishi Motors saw around 40 percent of its market value, or $3.2 billion, wiped out in three days after it admitted it had overstated the fuel economy of its minivehicles. Subaru on Wednesday said it was checking to see if any possible fabrication could have impacted its official mileage readings and if any exported models may have been affected. "At the moment we are trying to confirm whether data was indeed fabricated, and if so, how this happened and which models are affected," Subaru spokeswoman Miyuki Yasuda said. She added that any evidence of falsified mileage figures was unlikely to result in a recall as it would not constitute a violation of safety requirements. The mileage probe follows Subaru's revelation in October that uncertified staff had been for decades carrying out final checks that the Japanese government requires on new cars sold in the Japanese domestic market. The company this week vowed to improve oversight, but it did not mention any probe into mileage readings at the time. Subaru said reports of falsified mileage readings emerged as external investigators looked into the inspection scandal. Some inspectors told investigators that mileage data had been altered on some sample vehicle models tested during final checks. Subaru said it had not confirmed that any such fabrications had taken place. "Coming on the heels of the certified inspection issue, this could be a sign of a bigger problem of how Subaru manages its manufacturing operations," said Janet Lewis, head of Asia transportation research at Macquarie Securities. Subaru shares fell as much as 8.5 percent to their lowest since July 2016, before ending down 7 percent. The stock has given up almost 10 percent over the past two months amid the inspection scandal.

Subaru secures permit to test self-driving car in California

The list of automakers that can test their self-driving cars in California is getting less and less exclusive by the minute. Its latest addition? Subaru. The Japanese company has secured an Autonomous Vehicle Testing Permit from the state's DMV on February 9th, bringing the total number to 22. Some Subaru models already have assisted driving features thanks to their camera-based Eyesight system, such as adaptive cruise control, sway warning and pre-collision braking. However, the company is developing new capabilities meant to kick in while doing speeds of up to 40 mph, including the ability to auto-start and stop in slow traffic. Subaru also wants to offer lane switching and auto-steering around bends and curves -- semi-autonomous driving capabilities for highways -- by 2020. It's unclear what features Subaru will be testing exactly, and if they're any of these. All that's certain is that it's joining both big-name and little-known companies on California roads, like NVIDIA, Ford, Good and Baidu. This article by Mariella Moon originally appeared on Engadget, your guide to this connected life. Related Video: News Source: DMV Government/Legal Subaru Technology Autonomous Vehicles California

California adapts ZEV mandate with PHEVs for smaller automakers

California is the nation's largest market for zero-emissions vehicles with over 100,000 of them estimated to be on the roads there. The state's goal is to keep that number growing every year. To that end, the California Air Resources Board is now tweaking its rules in a way that might not boost ZEVs but could mean more plug-in hybrids for the Golden State. Jaguar Land Rover, Mazda, Mitsubishi, Subaru, and Volvo asked for an exemption to the state's zero-emissions vehicle mandate last year due to their relatively small development budgets compared to larger automakers. CARB denied their request but did craft a compromise, according to Automotive News. Rather than being required to offer a ZEV in the state, companies with an annual global revenue of less than $40 billion, like those in this group, may instead sell plug-in hybrids to earn ZEV credits. The companies aren't completely off the hook, though. If these plug-in hybrids don't earn enough credits, the corporations must buy them on the market to make up the difference. Automakers with popular electric models like Nissan and Tesla have made a big business through this trading system by selling their surplus to rivals. Tesla alone pocketed $51 million in the first quarter from this part of its business, according to Automotive News. The changes to the regulations also aren't set in stone, yet. CARB is meeting in 2016 and could adjust things further at that time. Related Video: News Source: Automotive News - sub. req. via Hybrid CarsImage Credit: Justin Sullivan / Getty Images Government/Legal Green Jaguar Land Rover Mazda Mitsubishi Subaru Volvo Emissions Electric Hybrid California zev credits zero emissions vehicle