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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 Viziv-7 Concept | Autoblog Minute

Subaru showed off it's truly-American sized three-row SUV at the 2016 LA Auto Show. Subaru SUV Autoblog Minute Videos Original Video autos subaru viziv-7 concept

2019 Subaru Forester Long-Term Update | A (mostly) trouble-free 12,000 miles

Our long-term 2019 Subaru Forester has been a real workhorse in our fleet from the time we took delivery late last year. We’ve managed to rack up over 12,000 miles in the first five months — itÂ’s been east and west of Michigan so far, but nowhere further than a dayÂ’s drive away. WeÂ’ll take it on a longer road trip soon. Since Subaru calls for 6,000-mile service intervals, our local Subaru dealer just finished up the second service call on the crossover. Both services have housed mini-events on top of the scheduled work. Subaru changed the oil, replaced the oil filter, rotated the tires and performed a multi-point inspection on both occasions. However, the first service also involved a windshield replacement. Days before our appointment with Subaru, one editor met with a rather large stone that was kicked up on the highway. This caused a large chip in the windshield that quickly developed into a crack meandering across the passenger side of the glass. After the new glass was installed, the Subaru techs had to recalibrate its Eyesight technology so the adaptive cruise control and lane-keeping tech would work correctly. It wasnÂ’t cheap — Subaru charges $250 for an Eyesight calibration after a new windshield is put in. The second visit called for everything else, plus a new cabin air filter. There was a little more to the second visit than what we had planned for, though. Just a week or so prior to taking it in, the driver door window switches quit working. None of the four window switches functioned. This lasted for a few days, but it miraculously fixed itself just before our appointment with Subaru. But we noted the issue to the Subaru dealer. The techs couldnÂ’t find anything amiss after disassembling it, and they sent us on our way. As of this writing, the windows are still functioning without issue. WeÂ’re keeping a close eye on them. Other than the head-scratching window problem, our Forester has performed admirably. We havenÂ’t noticed any egregious squeaks or rattles developing yet, and the 2.5-liter flat-four continues to hum along to its rather loud and thumpy beat.  Our winter tires and gold Sparco wheels have been getting attention around Michigan, too. Compliments are lobbed our way at gas stations, and one individual even asked us if we were selling. The ForesterÂ’s exterior design isnÂ’t as interesting as it used to be, but adding gold wheels to the equation has upped the cool factor tremendously.