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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.

Subaru Viziv Performance STI Concept has us dreaming of a future WRX STI

Subaru has revealed the Viziv Performance STI Concept at the Tokyo Auto Salon, and it's pretty much what you would expect. It's very closely related to the Viziv Performance Concept from the Tokyo Auto Show last year, but it's been given a bevy of flashy STI parts to make it aggressive. Up front, a deep lip spoiler complements a redesigned front bumper that does away with the two outboard air intakes and opens up the center one. According to a Subaru designer, it improves the cooling and aerodynamics. Having the blocked-off intakes on each side with STI logos is also a nice throwback to old Impreza STI models that often had blank panels with the logo over the foglight openings. Around the side are side skirts, and at the back are small extensions to the same diffuser from the earlier Viziv concept. And of course, there's a massive wing at the back. What's interesting is how much of the normal Viziv remains under the STI logos, decals and wings. The fenders look nearly untouched, and the hood scoop is the same size and shape as the standard concept. Even the exhaust, taillights and headlights are all the same. Then again, between the production WRX and WRX STI, the only real visible differences are the rear wing, wheels and front spoiler. And, if the Viziv Performance concepts preview future WRX and STI models, following that model makes sense. Of course the big differences between WRX and STI models are under the skin. Unfortunately, Subaru doesn't reveal a thing about what hypothetical powertrain is under this STI. Maybe we shouldn't be so surprised though, since the company didn't say anything about the regular one either. Only the use of a flat-four and all-wheel drive are certain. For that matter, even the styling isn't truly certain. While we can hope that the next WRX and WRX STI have the muscular look of these concepts, we have reason to be skeptical. But instead of getting cynical and sad, let's just enjoy this for what it is: a cool STI concept. Related Video:

BTW: Subaru's SHARC won the 2012 Design Challenge

Part of the festivities that encompass the LA Auto Show is the annual LA Design Challenge. This year's winner was the Subaru Highway Automated Response Concept, or SHARC. It envisioned automated, zero-emission highway patrolling.
The 2012 edition of the challenge was to envision the future of highway patrol in the year 2025. The goal was to conceptualize a vehicle that would account for the needs of "dynamic urban environments." In addition to Subaru's participation in the contest BMW, General Motors, Honda and Mercedes-Benz, all took part in the challenge.
The SHARC is essentially a law enforcement land-drone. It is entirely automated and runs on renewable energy. Subaru envisioned a future where the Hawaiian Islands are connected to each other by a large highway system. Such an expansive area would require considerable manpower to patrol. The concept of an autonomous patrol vehicle would eliminate the need for a good number of full-time personnel.