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Subaru suing CA dealership for alleged false customer surveys

Whenever you buy a new car from a dealer these days or sometimes even go in for service, you can expect to fill out a customer satisfaction survey at some point down the road. The responses are actually quite important to showrooms because automakers require the businesses to keep things at a certain level or face penalties. However, a Subaru dealer allegedly found a way to game that system, at least briefly, and now the Subaru of America has filed a lawsuit in US District Court for breach of contract. South Coast Subaru in Costa Mesa, CA, reportedly falsified 224 customer satisfaction questionnaires in 2014, according to Automotive News. The scheme wasn't that hard to figure out, though. All of the faked surveys were allegedly submitted through the IP address of an Acura showroom managed by the same dealer. Under normal circumstances when someone buys a Subaru, the dealer is supposed to collect the customer's email address and submit it to the automaker. However, South Coast allegedly presented false addresses, and then managers had employees fill the forms out during lunch. Subaru claimed in the suit that by doing this the dealer harmed the company's product reputation and its goodwill among customers. "Defendants prevented Subaru from discovering the actual customer satisfaction level of Subaru retail customers at South Coast Subaru by providing sham customer surveys to [Subaru]," the complaint said, according to Automotive News. Related Video:

Subaru recalling 660k vehicles in some states for possible brake line corrosion

Subaru is recalling 660,238 vehicles located in 20 US states that use salt on their roads. It's possible that salty water could splash onto the rear brake lines, and it could eventually cause corrosion and potentially perforation, leading to a fluid leak.
The recall covers the 2005-2009 Outback and Legacy, 2008-2011 Impreza, 2008-2014 WRX and STI and 2009-2013 Forester. However, only vehicles currently or formerly registered in the following snowy US states or districts are covered: Connecticut, Delaware, Illinois, Indiana, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, West Virginia, Wisconsin and the District of Columbia. The company previously recalled the 2005-2009 Legacy and Outback to repair this problem, and now it's added the additional models, plus any of the original cars it missed the first time.
According to the defect notice from the National Highway Traffic Safety Administration, Subaru found a total of 24 cases of corrosion in US leading up to the recall. There was a single case of actual brake line perforation, but it happened in Switzerland, according to the document. The company believes that it would take seven or more seasons of winter driving on salty roads before any corroding would begin.

Subaru puts China production on hold amidst slowing growth

Subaru's 2015 sales and production forecast estimates the Japanese brand to sell about 60,000 vehicles in China this year, a 10 percent rise. However, a recent decision not to build a factory there might make future growth more difficult. Given the changing state of the market, the automaker doesn't seem concerned by the potentially lost sales. According to Bloomberg, even if the Chinese government gave permission for Subaru to build its planned joint venture factory with Chery, the Japanese brand would not take advantage of it. "Since the profits are split with your partner, you would have to double the sales to maintain the profits you earn by exporting from Japan," said Akira Mabuchi, the company's executive in charge of China, according to Bloomberg. Subaru is in the odd position of being the only major Japanese automaker without a joint venture partner to build cars in China, but the massive year-over-year growth there seems to be slowing. Auto sales in China were up 6.9 percent in 2014, according to Bloomberg, compared to 14 percent in 2013. Also, Chinese consumers have been famously averse to buying Japanese vehicles with only half of the consumers there even willing to purchase one. Instead, the company is focusing on the US market, according to Bloomberg. The decision makes sense. While Subie's sales in China shrunk 2 percent in 2014 to about 55,000 vehicles, the company grew 21 percent in the US to 514,000 units. The automaker already has plans to add capacity to its factory in Indiana. News Source: BloombergImage Credit: Jae C. Hong / AP Photo Plants/Manufacturing Subaru