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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.

2020 Subaru Outback Touring Quick Spin | Balance of power

Driving an Outback in Subaru-crazy Seattle is just about as incognito as one can get. You can further disappear into the Evergreen State background if your Outback is Autumn Green Metallic. And that’s how we blended in for a week in a town where the Outback has been the top-selling vehicle several years, and where Subarus constitute 12% of all vehicles sold (2.5 times the brandÂ’s market share nationwide). A few cars are outselling the Outback so far this year — but that's OK, because one of them is the Subaru Forester. Our disguise for a week was a 2020 Outback Touring, the top trim level, which starts at $38,355 including destination fee. For that sum, which is nearly $12,000 more than a base Outback, you get a quite-nice interior done up in warm Java Brown Nappa Leather, with sunroof, 18-inch black aluminum alloy wheels, satin-chrome side mirrors, body-color door handles, heated steering wheel, and driver-distraction mitigation system. ItÂ’s a handsome package, especially the 11.6-inch Starlink touchscreen built into a monolithic, smooth black glass center stack, though the HVAC controls in particular are a curious mix of analog and digital. And it all rides on a new, stiffer platform — making the Outback inwardly new from the ground up, even though it was outwardly designed to look pretty much like it always has. ItÂ’s a conservative, donÂ’t-mess-with-success design approach that Subaru also used on the new Forester. What you donÂ’t get, at least not on this Outback tester nor the one we drove a few months ago in our first-drive review, is a whole lot of power. Both cars were equipped with SubaruÂ’s base 2.5-liter boxer four-cylinder engine that doesnÂ’t reach its peak 182 horsepower until 5,800 rpm, with peak torque of 176 pound-feet at 4,400 rpm. Curb weight on the Touring is 3,772 pounds. Horsepower is up by a mere seven over last year, torque by two pound-feet. Here in Subaru city, IÂ’ve known Outback owners who praise their car's virtues but almost apologetically slip in a qualifier: A little more power wouldÂ’ve been nice. Subaru has a solution for that — the optional XT engine, a 2.4-liter turbocharged engine putting out a thatÂ’s-more-like-it 260 horsepower and 277 lb-ft of torque. The turbo four takes the place of the 3.6-liter flat-six that was offered through 2019. But the MSRPs for the XT trims are a big step up – $4,300 to go from Limited to Limited XT, $2,350 from Touring to Touring XT – to a total ranging from $35,905 to $40,705.

Hyundai, Genesis, Subaru warn their dealers about markups

Six weeks ago, word got out that Ford's VP of sales for the U.S. and Canada wrote one of those "It has come to our attention..." e-mails to the automaker's dealer body. The VP's problem was dealers trying to get reservation deposits for the Ford F-150 Lightning well above the official $100 fee. The tomfoolery resulted in interactions "with customers in a manner that is negatively impacting customer satisfaction and damaging to the Ford Motor Company brand and Dealer Body reputation." Two weeks later, GM told its dealers to cut out the reservation gaming and the markups on the 2023 Chevrolet Corvette Z06, banditry that's been going on for two years. Two weeks ago, Ford was back at it, this time about markups on the Bronco. Last week, Asian automakers swept into the melee, with Hyundai and Genesis, Subaru, and Infiniti writing letters to their dealers to deliver some variant of, "Stop pissing off the customers." Automotive News reported an SVP at Hyundai Motor America and the COO at Genesis Motor North America sent letters to their dealers expressing disappointment at "certain pricing practices which, if left unchecked, will have a negative impact on the health of our brand." One of the practices mentioned was dealer markups, another was the bait-and-switch, with dealers advertising one price then charging a higher price once the customer showed up at the lot. The letters acknowledged that dealers are separate companies to the automakers and have the right to set their own prices. The automakers cannot interfere with that; their leverage is distributing allocations and perks such as advertising support and financial incentives. So, like a movie boss letting the protagonist go on a technicality, the brands wrote, "we cannot stand idly by watching the actions of the aforementioned dealers undo all the efforts we collectively have put into making these brands what they are today." Jalopnik got tipped to a letter Subaru of America CEO Thomas Doll sent to that brand's dealers. Doll's polite yet insistent tone was the result of a letter a loyal Subaru owner sent to the automaker's VP of Customer Advocacy. In the market for a third brand-new Forester, the owner said they encountered a "tax" labeled a "Low Inventory Surcharge" of as much as $6,000, putting the Forester out of reach.