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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.

Consumer Reports declares most and least loved cars [w/video]

Consumer Reports is crunching the numbers from its annual owner-satisfaction survey, and part of that process is finding out how attached drivers are to their cars. CR simply asks readers of models up to three years old if they would buy the same vehicle again in light of their entire ownership experience, and tallies the results. After looking at the responses for about 350,000 vehicles, it turns out that people really love a certain California-built, electrically powered luxury sedan. That's right, this year's the overall winner was the Tesla Model S with a whopping 98 percent of owners saying they would purchase another one (the Model S also won this award last year, with 99 percent satisfaction). The Chevrolet Corvette Stingray came in a close second with 95 percent of drivers hoping to park another one in their garage. A few models weren't quite so favored, though. The Nissan Versa Sedan was the least loved model among its owners; a mere 42 percent said that they would purchase another. The aging Jeep Compass didn't do much better, with just 43 percent of drivers willing to buy the softroader again. On average, about 70 percent of owners say they would buy their car again, and only four cars ranked below 50 percent in CR's findings. Check out the video above to see some of the winners and losers in a few of CR's categories. If you're a subscriber, you can check out the full list on its website. Related Gallery Consumer Reports Most Loved Cars 2014 Related Gallery Consumer Reports Least Loved Cars 2014 News Source: Consumer Reports - sub. req., Consumer Reports via YouTube Chevrolet Ford Mazda Mercedes-Benz Porsche Subaru Tesla Ownership Videos car ownership

Subaru announces 2019 Crosstrek pricing

For the 2019 model year, the Subaru Crosstrek doesn't get a big refresh, but it does have a couple changes coming down the pipeline. One of those changes is in the pricing. For 2019, the MSRP is up by $100. That means the base price for the Crosstrek 2.0i equipped with the six-speed manual transmission — the most bare-bones version — is $22,870, which includes the $975 in destination fees. So what's new for 2019? For one, Subaru's EyeSight driver assist technology — which includes adaptive cruise control, lane keep assist, pre-collision braking and lane departure and sway warning — is available on the CVT-equipped base model. It's an $845 option, totaling $28,745. The Crosstrek Premium, which begins at $23,870, now comes with the 6.5-inch multimedia as standard. The Crosstrek Limited, at $28,170 has EyeSight, automatic braking and high beam assist as standard equipment. The Subaru Crosstrek, regardless of trim level, is all-wheel-drive, and powered by a 2.0-liter four-cylinder providing 152 horsepower and 145 pound-feet of torque. That is mated either to a six-speed manual or a continuously variable transmission. The CVT in Premium and Limited trims also offers a seven-speed manual mode with paddle shifters mounted to the steering wheel. CVT models also come with X-Mode and Hill Descent Control for loose or slick roads or off-road driving. The Subaru Crosstrek offers fuel economy figures of 23 miles per gallon city/29 highway/25 combined for manual-equipped models. The CVT-equipped version offers 27/33/29 mpg. If that's not good enough for you, you won't have to wait long for something better. Subaru has announced that the 2019 Crosstrek will be its first model to receive a plug-in hybrid powertrain, available by the end of this year. We don't know what the pricing will be on that, yet, though. Related Video: