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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.

2020 Subaru Legacy spied with significantly revised styling

The current Subaru Legacy has been roughly the same car since it was introduced for the 2015 model year, with just a very light restyle for 2018. As such, it makes sense that Subaru is preparing a much more comprehensive redesign. One of our spy photographers caught the next Subaru Legacy midsize family sedan with that very update hidden by a thin vinyl wrap. From the looks of it, the new car will still be built off the existing platform. The entire greenhouse and glass area is practically identical to that of the current model. Aside from that, it every other panel has been massaged in some way. Up front, the grille looks a little shorter in height, but also stretched wider. The sides have more slant to them, too. The headlights have more of an upward sweep to them, as well. Overall, these changes give the Legacy more of a friendly smile as opposed to the blunt, chunky look of the current model. The lower grille and fascia have also been updated. Along the sides, the deep creases of the current model have been softened. The shoulder line that rises up over the rear wheel also gets a little bit of a dip at the leading edge near the front wheel. While the glass area is pretty much the same, the fake window trim on the C-pillar has been elongated to match a slightly more drawn out roof line. Finally at the back, the trunk lid looks more upright than that on the current model. The taillights have more molded shaping to them. Also noteworthy is the fact that this version has no exposed exhaust tips. The rear bumper is smooth all the way across. Subaru has already revealed the 2019 Legacy and Outback, both of which are basically unchanged except some new feature content. As such, the soonest this car will be out will be for the 2020 model year. That seems fairly probable, too, considering how close this car looks to being production ready and the age of the current Legacy. Related Video: Featured Gallery 2020 Subaru Legacy View 18 Photos Image Credit: SpiedBilde Spy Photos Subaru Sedan

Pontiac Aztek enjoys rebirth thanks to Millennials

Apparently, Millennials – those between 18 and 34 – aren't afraid to look different on the road, and they like performance, too. A new study by Edmunds is discovering some surprising vehicle choices by this group. Among them, the long-derided Pontiac Aztek is getting a new day in the sun with 25.5 percent its buyers coming from this generation in the first half of 2015. For comparison, Millennials represent an average of 16.8 percent of used car purchases. The Aztek is slowly shaking its reputation as a styling abomination, which seems tied to its appearance on Breaking Bad. The show premiered in 2008, and the Pontiac has been on this list for four of the past five years, according to Edmunds. It even led the pack in 2010. A recent Retro Review from MotorWeek also showed that the crossover wasn't always so hated. While it's still a shock to see the Aztek on any popularity list, the awkward-looking crossover only ranks sixth among Millennials. The vehicle with the biggest portion of buyers from the generation is the Dodge Magnum with 27.6 percent. According to Edmunds, the bluntly styled wagon is especially popular in Detroit and Chicago. The Chrysler Pacifica comes in a close second at 27.3 percent. When it comes to used cars, value and utility appear to trump just about anything else for many Millennial buyers," Edmunds analyst Jeremy Acevedo said in the report. Young buyers aren't afraid of sporty rides, either. The Subaru WRX has 26.4 percent Millennial buyers to rank third place on the list, and the Volkswagen R32 takes fifth at 25.7 percent. Just a few points lower in seventh place is the Nissan GT-R at 25.4 percent, and the final performance machine in 10th place is the Lexus IS-F with 24.7 percent. Related Video: