2016 Subaru Xv Crosstrek 2.0i Limited Awd 4dr Crossover on 2040-cars

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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.

Subaru, like Nissan, admits improper checks on Japan cars, expects recalls

TOKYO — Subaru on Friday said it had failed to follow proper inspection procedures for vehicles for the domestic market, an issue likely to result in a product recall and adding to a list of compliance problems at Japanese companies. The automaker said for more than 30 years, final inspections of new vehicles at its main Gunma complex north of Tokyo were sometimes conducted by inspectors who were not listed as certified technicians, violating transport ministry requirements. The automaker said it was therefore considering recalling about 255,000 vehicles including its Legacy, Forester and Impreza models produced at the complex and sold at home, at a cost of around 5 billion yen ($43.86 million). Chief Executive Officer Yasuyuki Yoshinaga at a news conference said inspectors in training for certification to sign off final checks had been approving the checks under the names of their trainers, a process the automaker followed for over 30 years without realizing it did not meet ministry requirements. "The final inspection process is very important and we acknowledge that we did not meet requirements," Yoshinaga said. "It's always been my goal to make this company good. This issue shows that we're not there yet." Subaru said it would report details of an internal investigation to the ministry on Monday, and that it needed to better communicate requirements to workers. "It's always been my goal to make this company good. This issue shows that we're not there yet." The revelation followed a similar oversight at Nissan, while Kobe Steel has been grappling with a data fabrication scandal, tarnishing Japan's reputation for quality control. Yoshinaga said the issue was discovered during an internal inspection ordered by the ministry after Nissan late last month revealed similar violations on inspections governing vehicles sold in Japan at its domestic factories. The ministry requires certified technicians to sign off on paperwork for final inspections for vehicles produced in Japan for the domestic market. The extra step does not affect product quality and is not needed for vehicles exported overseas. Toyota, Honda and other Japanese automakers on Friday said they have reported to the ministry that they found no issues with their respective inspections. Subaru shares closed down 2.6 percent on Friday after falling more than 3 percent following media reports of the improper inspections. The broader market rose 1.2 percent.

2017 Subaru Impreza makes a stand in the compact segment

If the 2016 Honda Civic was a revelation for the brand as a rebuke of the past couple of generations of their brand-and-butter compact, the 2017 Subaru Impreza appears to be on a parallel trajectory for the lauded all-weather performance brand. Unveiled Tuesday at the 2016 New York Auto Show, the 2017 Impreza brings in an all-new platform that is stiffer, sportier, and a much-needed improvement to stay competitive as the segment tightens up. The car features styling cues that are potentially the most attractive we've seen on a non-WRX model since the turn of the century. The car looks downright European in either sedan or hatchback form, stealing much of the thunder that the Mazda 3 and Civic had brought just a short time ago. Its lines are clean all around, the front and rear are largely without aerodynamic clutter, and much of that style is carried over to the interior that gets a much needed refresh. Gone are the overly utilitarian surfaces and buttons; a clear shift has been made to make the car seem on-par with class leaders like the Civic and Mazda 3, albeit with its own distinctive Subaru style. The dashboard seems just as straightforward as before, but packs the necessary technology to remain competitive in the segment. It seems that Subaru has listened to critiques of the outgoing Impreza, and sought out a way to continue the tradition of making AWD alternatives to the mainstream compacts, but this time without compromises on content. Up and down the four-trim model chain (2.0i, Premium, Sport, Limited), standard equipment is greatly improved. Even the standard 2.0i model will come with the necessary power features that anyone would expect, along with a much-needed 6.5" touchscreen interface that dual-boots with Android Auto and Apple Car Play - something that even the base trim Honda Civic LX does not have, and perhaps, that should put Honda on notice. In the very competitive compact segment, content is king. With standard equipment being on par with or exceeding the headlining Civic and Corolla, the added convenience of AWD is the cherry on top in places with cooler climates. Without major changes to the powertrain (slight power gains for the standard 2.0 H4 and an updated CVT), fuel economy perhaps remains to be the only caveat to the Impreza being a class-leading choice. With the current model rated at 28/37 compared to the Civic's 31/42, a slight improvement wouldn't be much in the grand scheme of things.