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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.

Subaru Viziv Performance Concept | Next WRX ... with driver assist?

VIZIV is a portmanteau, an invented moniker that Subaru has affixed to a series of concept cars it has shown over the past few years. The name is intended to combine the notions of vision and innovation inherent in these fantastical vehicles, which, like all concepts, presage a future that never comes. How else to describe a five-passenger, scissor-doored, diesel, hybrid, electric, all-wheel-drive, shooting brake? These reveries and chimeras have, in successive iterations, become a bit more ... realistic, or at least closer to the realm of possible. Witness the Viziv-7 shown last year at the L.A. Auto Show, quite clearly a near-production-ready preview of the brand's forthcoming three-row, seven-passenger crossover — and a long-expected replacement for the ghastly, Hercule Poirot-faced Tribeca from some years back. So what are we to make of the latest Viziv, the Viziv Performance Concept, just unveiled at the Tokyo Motor Show? A muscular, flare-fendered, four-door sport sedan, the VPC is, in Subaru's own words, intended to "deliver enjoyment and peace of mind" to its customers while evoking a design philosophy of "DYNAMIC x SOLID." [Subaru insists that it is not yelling, merely being emphatic.] The vehicle is also meant to integrate the latest in driver-assistance technology, built around Subaru's EyeSight distance cruise control and collision prevention system. It is surprisingly attractive, for a Subaru, which is to say, more than simply functional and unpretentious and rugged with a smattering of premium materials. It looks kind of French. "We utilize traditional Subaru shapes like the flared fenders and the hood scoop," says Mamoru Ishii, general manager of the design department's product planning division. "But we wanted to enhance the three-dimensional sculptural forms, to express more of the shadows." So it looks like a Subaru. But it also looks kind of ... fast. So is this thing the new WRX? Size and stature wise, that supposition would make sense. Especially since that model is now a wholly separate vehicle line spun off of the Impreza platform some years back and that the next generation is expected to reappear, in novel form and with its own identity, for the 2020 model year, making a conceptual appearance now timeline-proper. "It's a design study for a sport sedan, and WRX is one of them," says Ishii. "It's not so far from the next generation." Not so far away, but not so close.

Subaru investigation confirms vehicle data tampering in Japan

Subaru has admitted that alteration of fuel-economy and emissions data took place in its Gunma and Yajima manufacturing plants between December 2012 and November 2017. Some 900 vehicles were affected by data tampering, which Subaru says was done in the vehicles' final inspections by factory-floor inspectors. In a report, Subaru says "non-conforming" final vehicle inspections were identified in late 2017, and that the Japanese Ministry of Land, Infrastructure, Transport and Tourism demanded that Subaru undertake an internal investigation of the matter. Almost 7,000 vehicles were subject to inspection in the investigated time period, and the measurement equipment retained test data for some 6,500 of those. It showed that 903 vehicles had had their data "inappropriately altered," partially so that average data values would meet quality control standards. Subaru says that the decision to do this was made among vehicle inspectors and their foremen. As Subaru's statement reads: "Inspectors engaging in sampling of fuel economy and emissions were instructed by their seniors that, if results for each vehicle did not meet such standards, measurement values should be altered to those that meet such standards, and, according to such instructions, the inspectors altered measurement values. [...] Even if there were no problems in comparison with the internal quality control standards, inspectors altered measurement values with the intention of reducing variance in measurement values in order to avoid questions from the Group Chiefs and the Section Chief on such variance. It should be noted that alterations were made not only to make results better, but also to make them worse." It appears that everything was done to keep the average values right. Subaru adds: "Although the relevant laws and regulations stipulate that, in certain limited cases, measurement values could be altered in order to adjust errors caused by measurement equipment, inspectors misunderstand such adjustment method because of deficient internal rules and inadequate training. Inspectors altered measurement values by adjustment methods not stipulated in the relevant laws and regulations, without understanding that their methods were inappropriate." Test equipment did not contain data from earlier than 2012, but Subaru suspects such tampering took place as long ago as 2002. However, the matter will not result in recalls.