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Some 2019 Subaru Outbacks and Legacys recalled, owners could get new cars

Update: Subaru provided us with some updated details pertaining to this recall. Here's what the company had to say: "The cars in question can be and will be repaired; they will not be junked or scrapped. We are offering a replacement vehicle as to not inconvenience the owners. We expect the number of affected cars actually in owners hands to be between 12-20. We are checking the entire population, but the defect rate is low and we estimate just 200 cars are affected." Subaru is recalling a total of 2,107 brand-new vehicles due to faulty welds located on the duct below the cowl panel that could compromise the vehicle’s body strength, increasing the risk of injury in a crash. The 2019 Outback and 2019 Legacy are the two models involved with the recall. However, there are only 142 Legacys impacted, whereas 1,965 Outbacks are being called back. Subaru says customers will have a few options if they have one of the affected vehicles. YouÂ’ll be able to exchange the vehicle, let Subaru buy it back, or return the car for some intensive repairs. Perhaps this recall reminds you of the situation the Ascent was in last year. The large Subaru SUV was recalled due to it missing a series of spot welds on the B-pillar, weakening the structure. Subaru said it planned to destroy all 293 Ascents that were thought to be affected at the time. These new faulty welds are described differently than the ones we saw previously. HereÂ’s SubaruÂ’s explanation for what went wrong: “During the manufacturing process at the supplierÂ’s factory, the spot-welder tip is cleaned and re-shaped by a dresser (grinding machine). During production of potentially affected parts, the grinding machine may have been blocked by excess metal chips/powder, thus reducing the effectiveness of the welder.” Subaru reportedly told Consumer Reports that most of the vehicles being recalled havenÂ’t even reached the dealerships yet, with fewer than 20 of the vehicles in customer hands. That makes sense, as Subaru says the affected vehicles were built between May 31 and June 6, 2019. Subaru said a bodyshop employee initially noticed the defect on June 6, which prompted an internal investigation, leading to the recall. We asked Subaru if it could provide any more detail about the recall beyond what the official documents show — the latest information can be found at the top of the post. If you have a 2019 Outback or Legacy affected by this issue, expect to receive a letter in the mail soon.

Japan may aid carmakers facing U.S. tariff threat

TOKYO — Japan is considering giving carmakers fiscal support including tax breaks to offset the impact from trade frictions with the United States and a sales-tax hike planned for next year, government sources told Reuters on Wednesday. Going into a second round of trade talks with the United States on Sept. 21, Japan is hoping to avert steep tariffs on its car exports and fend off U.S. demands for a bilateral free trade agreement that could put it under pressure to open politically sensitive markets, like agriculture. "If the trade talks pile pressure on Japan's car exports, we would need to consider measures to support the auto industry," a ruling party official said on condition of anonymity because of sensitivity of the matter. The auto industry accounts for about 20 percent of Japan's overall output and around 60-70 percent of the country's trade surplus with the United States, making it vulnerable to U.S. action against Japanese exports. Japan's biggest automakers and components suppliers fear they could take a significant hit if Washington follows through on proposals to hike tariffs on autos and auto parts to 25 percent. Policymakers also worry that an increase in the sales tax from 8 percent to 10 percent planned for October 2019, could cause a slump in sales of big-ticket items such as cars and home. Prime Minister Shinzo Abe has twice postponed the tax hike after the last increase from 5 percent in 2014 dealt a blow to private consumption, which accounts for about 60 percent of the economy. To prevent a pullback in demand after the tax hike, the government may consider large fiscal spending later when it draws up its budget for next year, government sources said. "One option may be to greatly reduce or abolish the automobile purchase tax," one of the government sources said. The government is also considering cuts in the automobile tax and automobile weight tax to help car buyers, the source added. Reporting by Izumi Nakagawa and Tetsushi KajimotoRelated Video: Image Credit: Getty Government/Legal Isuzu Mazda Mitsubishi Nissan Subaru Suzuki Toyota Trump Trump tariffs trade

Subaru suppliers rely on gray market labor

The Subaru Forester is currently the Japanese brand's bestselling model in the US. A new investigation by Reuters is making some scathing allegations about how the popular model is actually made, though. The piece claims that many of Subaru's suppliers in Ota, Japan, are using low-paid foreign workers and asylum seekers to produce components that go into the CUV. The report says that these laborers are coming from places like China and Bangladesh, and they allegedly receive a pittance compared to their Japanese counterparts. Many said that they get about $6.60 an hour, but employment brokers can take a large portion of that pay. At just four suppliers Reuters estimates there are 580 foreign workers, or about 30 percent of the total workforce. The situation has turned Ota into a cultural melting pot because of the significant population of immigrant labor. The problem stems in part from Japan's tiny labor market, and the country's odd asylum system that doesn't allow some applicants to work legally. These suppliers produce many components for the Forester, including the seats, shocks, and fuel tanks. Reuters admits that the businesses have contracts with other Japanese automakers, as well, but Subaru receives the main focus of this piece, which you can read in full, here. When asked for comment about Reuters' report, Subaru of America provided Autoblog with the following statement: "Fuji Heavy Industries does not condone the exploitation of any class of worker, either in its own operations or within its supply chain. FHI expects all employees to be treated fairly, with dignity and respect and to be provided with appropriate workplace protections. The FHI CSR policy respects and adheres to the law and regulations of business as well as upholding human rights and international standards of behavior and the ethical standards of our stakeholders. Our supply chain network has been made aware of our policy and expectations."