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Subaru, like Nissan, admits improper checks on Japan cars, expects recalls

TOKYO — Subaru on Friday said it had failed to follow proper inspection procedures for vehicles for the domestic market, an issue likely to result in a product recall and adding to a list of compliance problems at Japanese companies. The automaker said for more than 30 years, final inspections of new vehicles at its main Gunma complex north of Tokyo were sometimes conducted by inspectors who were not listed as certified technicians, violating transport ministry requirements. The automaker said it was therefore considering recalling about 255,000 vehicles including its Legacy, Forester and Impreza models produced at the complex and sold at home, at a cost of around 5 billion yen ($43.86 million). Chief Executive Officer Yasuyuki Yoshinaga at a news conference said inspectors in training for certification to sign off final checks had been approving the checks under the names of their trainers, a process the automaker followed for over 30 years without realizing it did not meet ministry requirements. "The final inspection process is very important and we acknowledge that we did not meet requirements," Yoshinaga said. "It's always been my goal to make this company good. This issue shows that we're not there yet." Subaru said it would report details of an internal investigation to the ministry on Monday, and that it needed to better communicate requirements to workers. "It's always been my goal to make this company good. This issue shows that we're not there yet." The revelation followed a similar oversight at Nissan, while Kobe Steel has been grappling with a data fabrication scandal, tarnishing Japan's reputation for quality control. Yoshinaga said the issue was discovered during an internal inspection ordered by the ministry after Nissan late last month revealed similar violations on inspections governing vehicles sold in Japan at its domestic factories. The ministry requires certified technicians to sign off on paperwork for final inspections for vehicles produced in Japan for the domestic market. The extra step does not affect product quality and is not needed for vehicles exported overseas. Toyota, Honda and other Japanese automakers on Friday said they have reported to the ministry that they found no issues with their respective inspections. Subaru shares closed down 2.6 percent on Friday after falling more than 3 percent following media reports of the improper inspections. The broader market rose 1.2 percent.

Should Subaru stay niche or go mainstream? [w/poll]

Out of all the automakers doing business in the US, Subaru is the one that has carved out the most interesting niche for itself in the minds and lifestyles of buyers. Outdoorsy types, dog lovers and active families alike flock to Subaru's rugged nature and all-wheel-drive utility - and they're fiercely loyal, which is probably why Subaru has become a success story.
But Subaru is still a relatively small player in the US market, and with recent profits surging, parent company Fuji Heavy Industries is facing a dilemma: continue on with the successful niche market Subaru has carved out for itself, or attempt to go mainstream and give big players like Nissan and Toyota a run for their money. According to Carscoop, Japan Times and Bloomberg News are reporting that Fuji Heavy is beginning discussions this month to determine which direction Subaru will take.

Forgotten 1990s Subaru showroom is still full of new ghost Imprezas

Every now and then, stories and photos surface of car dealerships simply forgotten by time. Sometimes it's due to the dealer in question ceasing trading, for one reason or another, sometimes it's because of political tensions in the area — like with the Cypriot Toyota dealership which still has 1970s J-tin laying dormant, ravaged by opportunistic parts hunters. Years ago, photos appeared of a complete, 150-car, zero-miles Chrysler Neon shipment in Singapore. And no matter what the backstory, it's always fascinating to see completely everyday cars remaining undriven for decades, as if they were frozen in time while the world revolved around them. How about these as-new, unregistered, first generation Subaru Imprezas? Somewhere on the island of Malta in the Mediterranean, as reported by CarsAddition.com, there's a forgotten Subaru dealership with new mid-1990s stock still on the showroom floor. Judging by the unpainted bumpers and steel wheels, the right-hand-drive cars on display are absolute base spec, with likely the 90-horsepower 1.6 flat-four powering just their front wheels. They are almost all white, which adds to the appliance appearance. A couple Justy 4WD hatchbacks keep the Impreza saloons and wagons company, along with some Kei car vans and pickups. But the star of the showroom is the still-dazzling, late-'80s XT Turbo 4WD coupe, which has probably had been there originally to draw attention. It still does, and it's likely barely used. There are Subaru posters on the walls, all faded to blue, depicting Subaru's rally program and Leone/Loyale models which were originally replaced by the rounder Impreza in 1992. It's likely that all other base-model, first-generation Imprezas ever made have faced a quarter of a century of careless use, dents and rust. They were no fancier than a similarly priced Corolla, and it's unlikely any others have been preserved in a condition anywhere near these. Were the dealership owner ever to sell these, they would need complete overhauling after sitting for 25 years with their factory liquids and lubricants, but something tells me they won't leave the place anytime soon. It's unclear what the story behind this seemingly forgotten dealership is. CarsAddiction.com, the source for these photos, says it's probably due to a competing Maltese Subaru dealer upstaging this one, and the cars' era places them in the time of the 1990s economic downturn, which might have thrown a spanner in the works for this "Fuji" dealer.