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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.

Subaru WRX and STI meet at the dyno with interesting results

Road and Track recently put the 2015 Subaru WRX and the 2015 WRX STI through a battery of dyno tests to find out not only how much difference there is between their two engines, but what kind of differences there are. The WRX gets the company's new FA20 2.0-liter boxer four-cylinder engine with features like a twin-scroll turbocharger, direct injection and variable valve timing on its two cams. The WRX STI stands pat with the older EJ-Series motor, meaning a 2.5-liter boxer four-cylinder with port fuel injection and carryover turbo lag. Subaru pegs the $26,295 WRX at 268 horsepower, 258 pound-feet of torque and an "extremely conservative" 0-60 mile per hour time of 5.4 seconds. The $34,495 STI clocks in at 305 hp and 290 lb-ft with a 0-60 mph time of 5.1 seconds. Ok, fight.
R&T's dyno runs sussed power numbers at the wheel of 223 hp and 245 lb-ft for the WRX, 247 hp and 243 lb-ft for the STI, then went on to demonstrate in numbers what everyone knew: that the WRX consistently puts out more of its torque earlier than the STI and achieves full boost almost three seconds quicker. On the other hand, on the track, the STI was also shown to have a conservative official 0-60 mph time, stopping the timer at 4.8 seconds compared to the WRX's 5.2 seconds.
The mag says it has comprehensive results coming from its "complete battery of tests," but for now, you can scrutinize their dyno charts and let the battle continue about which one you'd rather put your money down for.

Subaru's BRZ STI Sport Concept is not quite what we've been waiting for

Subaru announced its lineup for the upcoming Tokyo Auto Salon, and at the tippy top is yet another STI-badged BRZ concept car. But unlike the Performance Concept from the 2015 New York Auto Show, the new BRZ STI Sport Concept isn't so extreme. While it's hard to predict what this car means based on the limited information Subaru has released, we can get an idea of where the company is going by looking at its last STI Sport production model – the not-for-US Levorg. Essentially, the BRZ STI Sport Concept sounds like a lukewarm example of the lovable rear-driver, taking parts of the tS driving experience and marrying it with some interior and exterior enhancements. We can see those latter elements in the sole image the company released – the silver concept car gets a fresh body kit that's less aggressive than 2015's Performance Concept. The sole exterior image shows a subtle chin spoiler and a more prominent upgrade to the side sill. Smaller changes include STI badges in the lower grille and side grilles. In the cabin, Subaru apparently added dark red upholstery. All of this gels with the aesthetic the Levorg pioneered. On the performance front, we see what look like Brembo-branded red brake calipers, but that's about as certain as we can get with mechanical upgrades. What we can't see are likely modest performance tweaks, focusing on the suspension. The Levorg STI Sport, for example, got adjustable Bilstein dampers, firmer springs, and a tweaked power steering system. A similar STI Sport concept, based on the WRX S4, will share the Tokyo show stand with the BRZ. Subaru's racing entries in Super GT, Japan Rally, and the 24 Hours of Nurburgring will also go on display. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.