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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.

Everything we know about the Subaru BRZ STI

May 30, 2017: It seems an STI-tuned Subaru BRZ was even closer than we thought. Subaru posted to its official Twitter page a teaser image of the upcoming car. It's a shot of the trunk lid with a big STI logo on the endplates. If that weren't enough confirmation of the car, the tweet included the hashtag "#STI." The only other information given was the date of June 8, 2017, and the promise of more information. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. May 23, 2017: Spy shots reveal our first look at a new STI-tuned Subaru BRZ, and it will likely come to the US. The reason we say this is that the car was spotted near a Subaru office in Ann Arbor, Michigan. We also know this is an STI badge because we can make out the distinctive logo underneath pieces of tape at the front and back. It features a huge wing that isn't found on any other BRZ, though the body kit appears to be the optional one available on regular models. There aren't any obvious signs of forced induction on the car either. No top-mounted intercooler scoops or front-mounted intercoolers are visible anywhere. We hope Subaru will give this car more power, but we're not optimistic, especially when the last STI-badged BRZ for Japan didn't get any power upgrades. April 1, 2015: Subaru reveals an amazing STI-tuned BRZ concept. Like the Subaru BRZ tS by STI, this STI Performance Concept has a huge rear wing, and subtle, functional-looking aerodynamic parts. Most importantly for BRZ fans, it also has a more powerful engine. Under the hood is a turbocharged 2.0-liter flat-four used by the GT300-class race car. It makes about 300 horsepower and 330 pound-feet of torque. However, Subaru said that it's unlikely a turbocharged model like this will come out soon. We expect that Subaru will first launch a tS-style BRZ in the near future, and possibly introduce a turbocharged BRZ variant with a new generation of the car. Subaru STI Performance Concept | 2015 NYIAS View 24 Photos April 19, 2013: Subaru announces the first STI-tuned BRZ, and it's not quite what we were hoping for. It's called the Subaru BRZ tS, and it has the same naturally aspirated engine, and thus, the same amount of horsepower. It's furnished with suspension upgrades, Brembo brakes, a front spoiler, and on the GT model, a big rear wing. Only 500 units will be made - and they're all for Japan. View 27 Photos

2019 Subaru Forester teased again ahead of New York reveal

Subaru continues to dribble out teaser images of its all-new 2019 Forester ahead of its reveal Wednesday at the New York Auto Show. The image, posted to Subaru's Facebook page, once again focuses on Forester's rear end, and specifically, the pincer-shaped right rear taillight that carries over from the Viziv concepts. Only this time, the photo is taken in broad daylight, so we can make out a little more of what's happening on that tailgate area. There are scooped-out recesses above the rear bumper and around the license plate and a wider cargo opening, as noted here previously. There's also some black plastic body cladding. Previous spy shots have suggested the crossover will retain the boxy shape and grille of the current model, but with some subtle sidebody creases like those found on the Impreza and Crosstrek. It's expected to ride on Subaru's global architecture platform, while engine options aren't known. The current Forester's base engine is a 2.5-liter horizontally opposed four-cylinder making 170 horsepower, with an optional turbocharged 2.0-liter that makes 250 hp and 258 lb-ft of torque. We'll know more tomorrow, when Subaru takes the wraps of the redesigned Forester in New York. Related Video: Image Credit: Subaru New York Auto Show Subaru Crossover tailgate subaru viziv