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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.

Junkyard Gem: 1982 Subaru GL 4WD Wagon

As a junkyard aficionado living in Denver, I get regular opportunities to study the history of the Pleiades-badged brand every time I hit the IMPORTS section at one of my local yards. You won't find any Subaru 360s in U-Wrench yards these days (I haven't seen a discarded 360 since the early 1980s), but I still find plenty of Malaise-Era Subarus from the period during which they were mocked for their small size in novelty songs. Here's a seriously loaded (by early-1980s standards) 1982 Subaru Leone four-wheel-drive wagon, found last fall in a yard just south of Denver. Back in those days, Subaru USA just called this car "the Subaru" and used the trim levels as confusing model names. There was the base model with no name, the mid-grade DL, and the high-end GL.  Four-wheel-drive was optional on Subarus at this point, though nearly all Colorado buyers paid for this feature. Unlike later all-wheel-drive systems with center differentials, this setup was true four-wheel-drive, which would tear up your tires (or worse) if you drove for too long on dry pavement with 4WD engaged. This proved very confusing for many owners of these cars (as well as those with four-wheel-drive-equipped Toyota Tercels and Honda Civics, a bit later in the decade). Check out the controls for the extremely rare dealer-installed air conditioning! This car has everything. By far the coolest optional feature on this car is the rare "third eye" center-mounted driving light, which lives behind this flip-up panel in the center of the grille and was actuated via a dash-mounted switch. You're more likely to find one of these lights in a BRAT, which was the truck version of the Leone, and I've found a few third-eye-equipped BRATs over the years. Did I buy the entire grille and third-eye assembly, for installation as a ceiling-mounted work light in my garage? You bet I did! With just over 180,000 miles on the clock, this car appears to have been very well cared-for during its life. There's a bit of rust in the usual spots, but nothing too severe by the standards of a near-40-year-old Japanese car. Plaid seat fabric became fashionable on cars like this during the early 1980s, as you'll see on many a Toyota Tercel 4WD Wagon. The 1.8-liter boxer-four in this car generated 82 horsepower when new, and it got the job done (if you were patient). This underhood sticker shows that this Subaru's original sale almost certainly took place in Colorado (or maybe Wyoming).

Subaru Germany sends off BRZ with 100-unit Final Edition

Both the Subaru BRZ and its Toyota 86 Sibling have been confirmed to have an impending second generation (well, confirmed before the pandemic), which means it's about time to start warmly saying goodbye to the current models. They deserve it, because although many will remember the sports cars for their lack of power, they should be remembered as affordable, sharp-looking, flickable sports cars with rear-wheel drive, manual transmissions, and an extremely fun chassis. As first reported by Motor1, Subaru Germany is sending the BRZ off with a limited-run Final Edition. To start, no, the Final Edition does not have any powertrain upgrades. In Germany, the 2.0-liter remains the same at 197 horsepower and 151 lb-ft of torque. A six-speed manual is the base transmission setup, while a six-speed automatic transmission will cost an extra $1,850.  The Final Edition improves where most of the other BRZ and 86 special editions have improved: handling. Subaru added Sachs shock absorbers and Brembro brakes with red-painted calipers. Surprisingly, the BRZ keeps its 17-inch wheels rather than adopting the available 18-inchers. The standard paint for the Final Edition is Crystal Black Silica, not picture here, but the WR Blue Pearl shown above costs the equivalent of an extra $109. And buyers will want to get the blue paint, because the inside has blue accents. The gearshift lever, door trim, instrument panel, and leather steering wheel all have blue stitching. The front leather-and-Alcantara seats are blue and black, while the rear seats are all black, and the floor mats have blue BRZ logos on them. A Final Edition interior badge notifies occupants of its special nature. The most significant part of this release is its limited availability. The Final Edition will be held to 100 units for the German market, which will have an instant collectible on its hands. Before destination, the list price will be the equivalent of about $43,800.