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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.

Woman thwarts car thieves by jumping on hood

When a pack of car thieves tried to steal a Milwaukee-area woman's car at a gas station, she didn't run for help. Oh no. She hulked out, jumped on the hood, and screamed her head off until the thief finally ran off. According to WISN, Melissa Smith was gassing up her white Subaru Outback at a BP station near Milwaukee's historic Third Ward on the afternoon of May 24. As she stood there pumping gas and minding her own business, a black Cadillac swung slowly around the front of the Subie and came to a stop just off the front left corner. As Smith turned her back to hang up the pump nozzle, a dude bailed out of the Caddy, crouched down, and snuck into the Outback's driver's seat. "I didn't see him till I saw him get into my car. Or someone was in my car, and had my, 'Oh, hell this isn't happening to me today' moment," Smith told WISN. As soon as she saw the thief in her car, Smith ran around the front then leaped on to the hood. She started yelling and pounding on the windshield as the thief tried to pull away from the pump, but he refused to stop. He tried a couple quick stops in an attempt to shake her off, but to no avail. "He looked at me, and he laughed at me, which really irritated me," Smith said. "He was laughing while I was on my car, and he was trying to throw me off, so zero remorse." Smith clung to the Subaru, shouting and pounding until the thief gave up. He abandoned ship, jumped back into the Caddy, and the group of thieves sped away. Unfortunately, when the thief bailed he left the Subie in gear with Smith still holding on for dear life. "Then I had to chase my car into the street and stop it before it hit somebody else," Smith said. Thankfully, Smith was unharmed in the incident, but the crooks got her purse, phone, wallet, and sunglasses. Milwaukee police are still looking for the suspects, who they say stole the black Caddy before trying to steal Smith's Subaru. Related Video: News Source: NBC News, WISN Auto News Weird Car News Cadillac Subaru Crossover Sedan carjacking milwaukee

Subaru offers 50th-anniversary edition versions of all its cars

Subaru is celebrating its 50th year in the U.S., and like so many automakers, its doing so by rolling out some special edition models. What's a bit unique about Subaru's approach is that the anniversary editions are available on every single model in the lineup. That includes Impreza, Crosstrek, Forester, Outback, Legacy, WRX, WRX STI and BRZ. The only exception is the Ascent, which isn't yet on sale in any form. What distinguishes the 50th anniversary edition Subarus are really just cosmetic things. They're all painted in an exclusive "Heritage Blue" and accented with satin chrome trim. Naturally they have "50th Anniversary" badges, too. Inside, they're all equipped with black leather featuring embroidered "50th Anniversary" logos and contrast silver stitching. The seatbelts are also silver. These special Subarus are limited production vehicles. The company will build 1,050 each of the Impreza, Crosstrek, Forester, Outback and Legacy. The WRX, WRX STI, and BRZ will comprise 1,050 cars with 600 WRXs, 250 BRZs and 200 STIs. Every example is also the highest trim level, and models that offer more than one engine will be split such that there will be fewer of the high-horsepower versions. All of the anniversary edition cars are now on sale. View 15 Photos Related Gallery 2018 Subaru 50th Anniversary Editions View 9 Photos Image Credit: Live photos copyright 2018 Drew Phillips / Autoblog.com Chicago Auto Show Subaru Coupe Crossover Hatchback SUV Sedan 2018 Chicago Auto Show