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Subaru investigates possible mileage data cheating, shares drop

TOKYO — Subaru, already smarting from a vehicle inspection scandal at home, said it was now investigating whether mileage readings may have also been falsified during final checks, driving its shares down as much as 8 percent. Mileage readings, an indicator of fuel efficiency, do not fall under safety requirements. However, any proof of what would be a second instance of misconduct in as many months would taint the image of not only Subaru but also Japan's manufacturing industry, which has been rocked by a slew of scandals recently. Just last year, Mitsubishi Motors saw around 40 percent of its market value, or $3.2 billion, wiped out in three days after it admitted it had overstated the fuel economy of its minivehicles. Subaru on Wednesday said it was checking to see if any possible fabrication could have impacted its official mileage readings and if any exported models may have been affected. "At the moment we are trying to confirm whether data was indeed fabricated, and if so, how this happened and which models are affected," Subaru spokeswoman Miyuki Yasuda said. She added that any evidence of falsified mileage figures was unlikely to result in a recall as it would not constitute a violation of safety requirements. The mileage probe follows Subaru's revelation in October that uncertified staff had been for decades carrying out final checks that the Japanese government requires on new cars sold in the Japanese domestic market. The company this week vowed to improve oversight, but it did not mention any probe into mileage readings at the time. Subaru said reports of falsified mileage readings emerged as external investigators looked into the inspection scandal. Some inspectors told investigators that mileage data had been altered on some sample vehicle models tested during final checks. Subaru said it had not confirmed that any such fabrications had taken place. "Coming on the heels of the certified inspection issue, this could be a sign of a bigger problem of how Subaru manages its manufacturing operations," said Janet Lewis, head of Asia transportation research at Macquarie Securities. Subaru shares fell as much as 8.5 percent to their lowest since July 2016, before ending down 7 percent. The stock has given up almost 10 percent over the past two months amid the inspection scandal.

Toyota recalls another 2.9 million vehicles over Takata airbags

Subaru, Mitsubishi and Hino doing recalls, too.

2018 Crosstrek propels Subaru to best-ever April sales

April was a dismal month for most automakers, with sales declines that ranged from 4.7 percent for Ford to a whopping 28 percent for Nissan. So here comes mighty little Subaru, which claimed the month as the best April in its history. The gain is entirely attributable to the Crosstrek, which is all-new for 2018. Sales of the compact, raised crossover climbed almost 70 percent for the month to 12,266. Year to date, Subaru has sold 45,728 Crosstreks, an increase of 66.6 percent. That helped push Subaru's total U.S. sales to 53,170 in April and 202,873 for the first four months of 2018, increases of 1.5 percent and 3.2 percent, respectively. It also marks 77 consecutive months of yearly month-over-month growth for Subaru. All other models saw declining sales for April, led by the Impreza, which was down 27.4 percent. "Our customers' interest in the Crosstrek continues to increase every month," Jeff Walters, senior vice president of sales, said in a statement. "We're now looking forward to the start of production later this month of the all-new Subaru Ascent at our plant in Indiana." The 2018 version of the Crosstrek went on sale last August featuring a new 2.0-liter flat-four engine, stiff new chassis, more ground clearance and the EyeSight suite of safety technologies, among other changes. But the Crosstrek has been on a hot streak for a few years now, with sales up 15.1 percent in 2017 and 6.7 percent in 2016. The Crosstrek is Subaru's third top-selling model behind the Forester and Outback. Subaru spokesman Dominick Infante says the company did not see the sales trail-off last year that's typical of a vehicle at the end of its lifecycle with the Crosstrek. "It was essentially a straight line going up, and it was limited by production," he said. The difference, he said, is that Subaru is now able to make more of them. The company last year shifted production of the Impreza to its plant in Lafayette, Ind., to free up capacity to build more Crosstreks at its plant in Gunma Prefecture, Japan, which underwent a major retooling. The Indiana plant now builds the Impreza, Legacy and Outback after the expiration of a contract in 2016 with Toyota to build 100,000 Camry sedans annually. Production of the new three-row Ascent crossover will start in Indiana in May, following a $140 million expansion at the plant, according to Automotive News. The vehicle is due in showrooms in June, Infante said, with sales of 60,000 expected in the first year.