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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.

Junkyard Gem: 1984 Subaru GL 4WD Wagon, Colorado Stereotypes Edition

I live in Denver, which means my local junkyards are well-stocked with used-up Subarus. These days, that means mostly Outbacks from the 1995-2005 period, but sufficient 1970s and 1980s Subarus remain in service that they show up from time to time. Here, in a Denver self-service yard, is a second-generation Leone wagon, from the era when this car was called just "the Subaru" in the American market. It appears that this car's final owner named it The Little D. Right next to the rag being used as a gas cap, a Yoda-ized Steal Your Face skull. This sticker from Incredible Extracts is easy to find in and on the cars in Denver-area wrecking yards. Someone made a pretty good Hunter S. Thompson stencil for the right-hand rear side glass. Neither of the two other members of the Male Hipster Holy Trinity (Kerouac and Bukowski) are to be found here, but then those two didn't live in Colorado. Anonymous is everywhere, even the junkyard. In 1984, the GL was the top trim level of the Subaru wagon, and the MSRP on this car was $8,168. That's about 19 grand in 2017 dollars. The going rate for a hooptie '84 GL wagon in 2017 is about $250. This car has manually-actuated four-wheel-drive, rather than the center-differential-equipped all-wheel-drive you'll get with your 21st-century Subaru. This meant that drivers were supposed to use front-wheel-drive on dry asphalt and four-wheel-drive on snow or dirt, but many didn't understand the concept and tore up their tires and/or powertrains by running 4WD at all times. These cars would get you to the slopes every time, and they'd do it cheaply enough for you to afford your preferred intoxicants once you got there. This car's 34 years on the road are done, but many of its kind remain. Related video:

Subaru Viziv GT gears up for Vision Gran Turismo action [w/video]

Ever wonder what it would look like if Subaru made a big brother to the BRZ, maybe to take on the Nissan GT-R or Japan's Super GT series? (Well, the BRZ already competes in the GT300 class, but we're talking about the GT500 major leagues here.) Wonder no more, car fans, because it'd probably look something like this. Only it's not a road car, and it's not a racecar. It's the latest addition to the growing roster of Vision Gran Turismo concepts for GT6.
Borrowing on the design theme put forth by the Viziv concept that debuted at the 2013 Geneva Motor Show and the Viziv 2 concept showcased the following year, the Viziv GT Vision Gran Turismo is envisioned as a racing machine. Its hypothetical hybrid powertrain pairs a 2.0-liter boxer four, turbocharged and direct-injected, to a trio of high-output electric motors to deliver a claimed 591 horsepower and 593 pound-feet of torque.
Carbon fiber construction helps offset the weight of the motors and batteries to keep the hybrid racing shooting brake down to a theoretical 3,000 pounds, with competition-spec aero to keep it glued to the track. Gamers will be able to download it directly in the game as part of the latest update, but you can scope it out right here in the image gallery above and the video and press release below.