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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.

2019 Subaru Crosstrek Hybrid Drivers' Notes Review | A great, green Subaru with a price

When we had the opportunity to try the 2019 Subaru Crosstrek Hybrid on the rocky, dusty trails above Santa Monica, it had us excited to try it on our crumbling Michigan roads. Luckily, the arrival of Subaru's first plug-in vehicle to the Autoblog office coincided with a powerful snowstorm followed by subzero temperatures, and then some serious freezing rain to cap off our week with it. Perfect Subaru weather. The new Crosstrek Hybrid may share a nameplate with the discontinued conventional hybrid, but this one features a plug-in hybrid powertrain borrowing technology from Toyota. It features two electric motors — one to propel the vehicle, the other acting as a starter/generator. Together with its 2.0-liter, four-cylinder boxer engine, this PHEV gets a combined 148 horsepower, and is actually a full second quicker from 0-60 than the ICE-only Crosstrek. With an 8.8-kWh lithium-ion battery pack, it offers a modest 17 miles of all-electric driving, but an overall range of 480 miles. Editor-in-Chief Greg Migliore: This is a solid execution of the modern hybrid. The price is reasonable. The range (17 miles of EV travel) is usable. Go where you need to go. Charge up. You're good. It's attractive, inside and out. I love the Lagoon Blue Pearl paint. The cabin is comfortable and laid out nicely, and the blue stitching and pleasing leather elements dress things up. As expected, the Crosstrek is solid in the snow and ice. I had no trouble navigating the messy roads when much of the rest of the world was snowed in. The infotainment is smart. It's part of a $2,500 option that also adds the moonroof and heated steering wheel. It's worth it. I already like the Crosstrek. If it were my money, I'd go for hybrid variant. Senior Editor, Green, John Beltz Snyder: A night and a morning in the Crosstrek Hybrid on Michigan roads only confirms what I decided when I drove it in California two months ago: I dig this car. It's quiet, it's economical, it's capable, it's good-looking. There are only two downsides that I see. First is the cargo area behind the rear seats. It's pretty small. The battery pack raises the load floor a few inches above the bumper height. That doesn't seem like a lot, but when you realize how high it already is, taking out those few extra inches means it's not only harder to fit large items back there, it's harder to load and unload them at that height. This content is hosted by a third party. To view it, please update your privacy preferences.

Subaru debuts Euro-spec XV and Forester e-Boxer hybrids

The biggest story out of the Subaru camp in Geneva is the new Viziv Adrenaline concept, but two more pedestrian reveals have much higher impacts on immediate production. Subaru debuted the new e-Boxer hybrid powertrain in both the Forester and the XV, the first electrified Subarus for Europe. The unveilings come after Subaru showed off the Forester STI e-Boxer concept at the Tokyo Auto Salon, which somewhat predicted what we'd see here. Unlike America's XV Crosstrek hybrid that uses a plug-in setup, these models are cordless. In fact, from the outside, the only real indication these are hybrid models are a couple tiny badges on the front quarter and the rear, as well as some trim-specific styling. Both the XV and the Forester use the same e-Boxer powertrain. It combines a horizontally opposed 2.0-liter four-cylinder engine that's rated at 148 horsepower and 143 lb-ft of torque and a 16-horsepower electric motor that's integrated into the transmission. Energy is stored in an 118-volt lithium-ion battery pack that has a maximum output of 13.5 kW. This powertrain is paired with Subaru's Lineartronic transmission and symmetrical AWD in both models. Subaru is quick to point out the advantages of the placement of the hybrid powertrain. Because the battery is located on the rear axle, e-Boxer cars have not only a lower center of gravity than the traditional ICE models, they also have better weight distribution. Both characteristics should improve the handling and ride quality of both vehicles. Subaru did not give further details on fuel efficiency numbers or pricing, but it expects to have the Forester and XV e-Boxers on the road in Europe by fall 2019. There is no word yet as to whether the e-Boxer powertrain could come to America, but it's unlikely considering the XV PHEV already exists here. News Source: Subaru Green Geneva Motor Show Subaru Crossover Hybrid subaru xv crosstrek