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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.

The art of WRX-ing in the rain

There it is again, the quiver of the STi's blue rear spoiler. I noticed it yesterday on the Autobahn north of Frankfurt. Although the speed limit was 120 kilometers per hour, I was cruising in sixth gear around 200 kph when the STi's signature rear appendage began to dance in my rear view mirror. Now I'm redlining fifth gear on the front straight of the legendary Nurburgring's north loop and it's back. Only this time the quivering blade is in a deluge of water coming off the Subaru's 18-inch Dunlops. It's a rooster tail worthy of Miss Budweiser and it's a constant and sobering reminder that I'm lapping the 13-mile long Nordschleife in a freezing and unrelenting rain. I'm driving a 2017 German-spec Subaru WRX STi, not the updated 2018 version that'll get revised front end styling, tweaked suspension tuning, larger Brembo brakes and 19-inch wheels and tires. At 240 kph, close to the 2.5-liter boxer four's 6,700 rpm redline, I shift up to sixth gear and change lanes to avoid the standing water on the left side of the track. It's my third lap. I'm getting over-confident. The all-wheel drive WRX STI is dealing well with the tricky conditions and the Ringmeisters of the past that tamed this track since it was first built in 1929 - Ascari, Fangio, Clark, Caracciola, Nuvolari, Rosemeyer, Chiron, and Ickx - are talking to me inside my head. And they're egging me on. Pushing me to go faster. I'm sticking to wet line and staying off the tall curbing that marks most apexes. Bounce the Subi off a curb and I'm sure to star in the next Nurburgring crash video to hit YouTube. I'm also desperately trying to stay off of the new pavement, which dots the circuit and has a coefficient of friction in the wet similar to snot. Then I make a huge mistake on the entrance to Bergwerk, a tight right hand corner that comes up quickly after a long, fast section and the left hand kink that Nicki Lauda got so wrong in the 1976 Grand Prix. The Nordschleife has 160 corners. Most are blind. Many are off camber. All are lined with walls and Armco barriers. Even the straights are kinked and crowned. And there are two very fast downhill compressions and three jumps that max out a car's suspension travel. There's no runoff room. No margin for error. And remembering the course in this weather in just a few laps is impossible, I don't care how much Gran Turismo you've played.

Toyota GT86 convertible on 'indefinite hold'

Bad news, sportscar fans. According to a new report from What Car?, Toyota has cancelled plans to produce a GT86 convertible, a model based on the FT-86 Open Concept that debuted at the 2013 Geneva Motor Show. In truth, Toyota never actually confirmed it would produce the budget-friendly droptop in the first place, but rumors have been flying since last year and Toyota reportedly showed its embattled Scion dealers a FR-S version of the convertible in August. Presumably, this means that a lidless variant of the Subaru BRZ is not in the cards, either.
The reason for the move is unknown, though What Car? reports "one possible cause is weight; Toyota did say that further work would be required on rigidity before the convertible could be launched, and that could have added extra bulk that conflict with the regular GT86's ethos of light weight and agile handling." It doesn't look like that work will happen anytime soon, as "sources now say that the car has now been delayed indefinitely, with no place in Toyota's product plan in either 2014 or 2015." Still holding out hope? What Car? says the project could be "fast-tracked" if management decides it wants to reboot the program down the road.
one possible cause is weight; Toyota did say that further work would be required on rigidity before the convertible could be launched, and that could have added extra bulk that conflict with the regular GT86's ethos of light weight and agile handling. - See more at: http://www.whatcar.com/car-news/toyota-gt86-cabriolet-cancelled/1214782#sthash.iStIkWnz.dpuf