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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.

2018 Subaru WRX STI Type RA First Drive Review | A taste of Japan

PALM SPRINGS, Calif. — Last year, Subaru set a record for the fastest sedan lap at the 'Ring in a race-spec STI Type RA, which completed nearly 13 miles in less than seven minutes. The new 2018 Subaru WRX STI Type RA is inspired by that record-breaker (and those before it), and it will finally come to the United States as a special edition limited to just 500 units. We traveled out to the California desert to test it on mountain roads, as well as a recently built private race track at the Thermal Club. Record Setting Pedigree Subaru built its first "Record Attempt" (that's what the RA stands for) vehicle in 1988, a Subaru Legacy that drove more than 62,000 miles over 18 days at an FIA track in Phoenix. Since then, Subaru has introduced a number of WRX/STI Type RA models, with several attempts to set record laps at the Nurburgring. While Japanese customers got the opportunity to buy consumer versions of the Type RA, fans in the United States never did. Until now. The nameplate finally comes to the rest of us, improving upon an already potent, all-wheel-drive performance sedan for the everyman. The STI already offers 305 horsepower, a forgiving torque vectoring system, and that big, beautiful wing to set it apart. The Type RA takes this even further, providing more refined performance from a familiar package. The cars are currently being built, and will arrive in dealerships soon. Special Equipment Compared to the standard STI, the Type RA is about 68 pounds lighter thanks to a carbon roof and rear wing, BBS 19-inch forged aluminum alloy wheels, the deletion of the rear armrest and swapping of the spare for a tire repair kit. The lighter roof also helps to lower the center of gravity by a fraction of an inch. Other exterior changes include signature STI Cherry Blossom Red highlights on the grille and rear bumper, a front spoiler, black mirrors and Type RA badging. It only comes in three paint colors: WR Blue Pearl, Crystal Black Silica and Crystal White Pearl. Inside, it gets an ultrasuede steering wheel, short-throw shifter, red push-button ignition and a serialized plate to indicate its rarity. Under the hood, the Type RA benefits from strengthened pistons and sodium-filled exhaust valves that better withstand high temperatures, which is important as the number of laps ticks higher on track day. It gets revised ECU tuning, and lower-restriction air intake and exhaust. Finally, it has a 4.5 percent lower third gear ratio.

New Subaru Impreza coming for 2017, previewed by this concept

There's a new Subaru Impreza coming in late 2016, as a 2017 model. And while we don't know any specifics about Fuji Heavy's new compact, we know it'll look something like the concept seen here. Simply called the Impreza 5-Door Concept, this slick hatch makes its debut at the 2015 Tokyo Motor Show, and we're crossing our fingers that the next-generation production car shares a lot of this hatchback's design. Subaru says this concept hints at "the design direction not only of the new Impreza but of Subaru's future models as a whole." That's easy to see – the fascia wears an more heavily sculpted version of the brand's current design language. Slim taillights accent a petite rump, though we'll of course be interested to see how this design language translates to a four-door Impreza sedan, as well. That said, Subaru sort of has a habit of letting us down in the transition from showcar to production model. This is one company that creates gorgeous concepts, but then the final designs often leave us feeling a little flat. We'll have to wait until next year to know if that's the case with this slick new Impreza. For now, fingers crossed. Subaru "Impreza 5-Door Concept" Makes World Debut at Tokyo Motor Show 2015 Tokyo, October 28, 2015 – Fuji Heavy Industries Ltd. (FHI), the manufacturer of Subaru automobiles, today unveiled the "Impreza 5-Door Concept" at the 44th Tokyo Motor Show 2015. The Impreza 5-Door Concept is a design concept car previewing the next-generation Impreza which is to be the first one of Subaru's next-generation strategic vehicles envisioned in FHI's Mid-Term Management Vision "Prominence 2020? announced in May 2014. While positioned as an entry model in the Subaru lineup, its compact body features a blend of bold expressions of Subaru's Dynamic & Solid design elements and a quality feel beyond its class – hinting at the design direction not only of the new Impreza but of Subaru's future models as a whole. Main Features of Impreza 5-Door Concept The front, sides, and rear are seamlessly joined in the Dynamic & Solid surface structure, creating a three-dimensional and solid body that is a feature of Subaru styling. The dynamism is enhanced by well-placed character lines on the 5-door style compact body shape. The design expression of "Enjoyment and Peace of Mind", the value that Subaru provides to its customers, is fully pursued within the limits of the C-segment body size.