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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 Legacy pitted against Roadkill project cars

There's an evergreen debate among auto enthusiasts about whether they would prefer to have the latest and greatest car of today or a certified classic from yesteryear. What if you had to further define that, though, and the choice was between a brand new 2015 Subaru Legacy or a turbocharged Datsun 240Z with a hatch that wouldn't close? Roadkill aimed to find out that and more in one of its best videos to date.
According to the hosts, Subaru came to them, handed over some money and challenged Roadkill's project cars against its latest Legacy. The result is every bit as good (or better) than any automotive-themed show you could find on television.
Things start simple with a figure-eight race in a rodeo arena with the Subaru taking on Roadkill's 1968 Ford Ranchero, originally built for ice racing. From there the Legacy races a 1968 Dodge Charger with no windows around and off-road rally stage. Finally, the Subie goes head-to-head against the Rotsun, the aforementioned turbocharged 240Z, through an abandoned neighborhood. Plus, there's a bonus drag race challenging them all.

Subaru XV Concept is our first glimpse at the next Crosstrek

Subaru debuted a pair of Impreza concepts at last year's Tokyo and Los Angeles shows – one, a five-door hatch, the other, a sedan. But the Impreza range also includes the lifted Crosstrek, known as the XV in other markets. So at the 2016 Geneva Motor Show, Subaru presents our first official glimpse at the next-generation, high-riding Impreza, by way of this XV Concept. Details are few – what you see is what you get. The XV definitely has a more butch take on the sedan and hatchback concepts that came before it, in keeping with the Crosstrek's ethos. The concept rides on 19-inch wheels which surely won't make it to production, and we expect some sort of boxer four-cylinder engine to drive power to all four wheels. View 12 Photos All in, the XV Concept looks pretty good. But Subaru has a long history of making attractive concept cars that don't quite carry their beauty over to production. Even so, the current Crosstrek has a sort of rugged handsomeness to it, so here's hoping something similar happens when this concept eventually transforms into a production model next year. "Subaru XV Concept" Makes World Debut at 2016 Geneva International Motor Show Tokyo, March 1, 2016 - Fuji Heavy Industries Ltd. (FHI), the manufacturer of Subaru automobiles, today unveiled the Subaru XV Concept at the 2016 Geneva International Motor Show. The Subaru XV Concept is a design concept car that embodies Subaru's next-generation DYNAMIC X SOLID design philosophy in a compact crossover model. Its compact body features Subaru's DYNAMIC X SOLID design elements, the powerful form of a crossover, and a quality feel beyond its class – previewing the design direction of the next-generation Subaru XV*. Main Features of Subaru XV Concept The front, sides, and rear are seamlessly joined in the DYNAMIC X 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 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 compact crossover model body size. In the area of functionality essential to a Subaru car, excellent aerodynamic performance is teamed with the ample road clearance and luggage space required of a crossover vehicle, achieving blend of function and style.