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Subaru Profits to be Hit by Inspection Scandal, Recalls

Japanese maker struggling to get inspection issue resolved.

by Michael Strong on Nov.05, 2018

Subaru plants in Japan are still struggling with false inspections, which will impact its yearly earnings.

Subaru continues to struggle with recall issues, saying it would recall more vehicles sold in the Japanese market due to newly found instances of inspection cheating. Coupled with its recent engine recall and other actions and the company’s profits are expected to be cut by about 25%.

The company plans to recall about 100,000 vehicles, including its popular Impreza sedan, after it was found the final tests for components including brakes were not conducted properly. Vehicles sold overseas will not be affected. 

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“It’s unforgivable that these inspection-related issues are continuing,” CEO Tomomi Nakamura said. According to Reuters, he repeatedly added he believed that the latest recall would be the last related to testing misconduct.  (more…)