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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.

Subaru teasing STI surprise for NYC show?

Subaru is no stranger to the Special Edition car, least of all where its vaunted WRX and STI are concerned. From Spec C to Prodrive to 22B, more than a handful of STI's around the world have been released as limited-run editions, often with stirring results. So, while we were more than a little bit surprised to see that big-wing crop up on the Subaru Twitter page today, we can't say as though its not true to the brand's history.
However, while most of the interesting WRX STI variants have been offered to Europe and Japan only, whatever is wearing that carbon-fiber-lipped wing is set to debut at the New York Auto Show this week.
We don't have a clue as to the precise nature of the car in front of that wing, save to say that it's likely based on the STI. We can guess, however that the extra vertical supports and the use of carbon fiber indicate a higher-performance version than currently exists. Anything from a racing application to some new goodies for the aftermarket are in the realm of possibility.

Subaru brings back the Barkley dogs in new TV spots

Who let the dogs out? Subaru did. And they're bringing them back. The company announced it's bringing back the Barkley family of Labradors and Golden Retrievers for a new series of TV spots called "Dog Tested. Dog Approved." Subaru aired the four 30-second ads during the 24th annual Screen Actors Guild Awards on Sunday, which it has sponsored for 14 years. They'll repeat on network and cable broadcasts and feature in targeted digital and social media promotions. Subaru used the Barkleys most recently to unveil its new Ascent three-row SUV during its "Welcome to SubaruVille" event at the L.A. Auto Show late last year. The stunt was widely deemed adorable. The family of dogs have appeared in the automaker's ads as far back as 2009. "With more than half of Subaru drivers having pets, we believe it is important to celebrate the love of pets shared by our owners," Alan Bethke, senior vice president of marketing at Subaru of America, said in a statement. "Pets are considered members of our Subaru family and utilizing the Barkleys in our campaigns allows us to connect with our customers in an authentic, fun and entertaining way." The new ads are "Car Wash," embedded atop this post; "Drop Off," about the first day of obedience school; "Driving Lesson," in which a parallel parking lesson is complicated by passing geese; and "Drive Away," about a teenage dog being picked up by his father at the Dog Bowl. Subaru said it will also sponsor this year's "Puppy Bowl XIV," which airs February 4 on Animal Planet on the same day as the Super Bowl, and it plans to partner with BuzzFeed and Funny or Die on custom content branded with the hash tag #MakeADogsDay later on in the campaign. Subaru partners with animal welfare organizations like the American Society for the Prevention of Cruelty to Animals as part of its Subaru Loves Pets campaign.Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. News Source: Subaru Auto News Marketing/Advertising Subaru Crossover SUV dogs subaru ascent