Photo: Subaru
Fresh from announcing the first quarterly loss in many years, Subaru acknowledged that the inspection cheating scandal is much wider than we thought in the first instance. Even Tomomi Nakamura, the chief executive officer of the Japanese automaker, said that the lack of respect for regulations led to things going out of control.
The affair started in November 2017, when Subaru recalled 395,000 vehicles over compliance failings. This mess-up came on the footsteps of two more scandals from the automotive industry of Japan, encompassing the Nissan Motor Company and Mitsubishi Materials Corp.
Fast-forward to the shareholders meeting from June 2018, and that’s when Yasuyuki Yoshinaga stepped down as CEO of Subaru’s automotive division. Developments in the investigation are ongoing, and so far, Subaru announced that it would recall an additional 100,000 vehicles after discovering that the inspection of the braking system wasn't performed in compliance with quality control regulations.
The head honcho ensured that this is the final recall connected to the inspection scandal, and Subaru will pony up 6.5 billion yen in costs related to fixing these vehicles. Converted to U.S. dollars, that sum translates to no less than $57 million.
But this isn’t the only trouble that Subaru has to face. Last month, the automaker announced that it would recall 400,000 vehicles to fix a flaw with the valve springs of the engine found in the Impreza and Forester. To make matters worse, Subaru is also preparing for a hike in tariffs on Japanese imports, which would raise the price of several popular models in the United States of America, including the Forester.
Turning our attention back to the recall extension, the automaker did mention that those 100,000 vehicles were manufactured in Japan for the Japanese domestic market between January 9th, 2018 and October 26th, 2018. As a result of this development, the total number of recalled vehicles now reaches 530,000 units.
On that note, care to guess what the higher-ups have to say about the situation they're in? “Subaru sincerely apologizes to its customers and stakeholders, and also to the wider public, for the concern and inconvenience caused.”
Fast-forward to the shareholders meeting from June 2018, and that’s when Yasuyuki Yoshinaga stepped down as CEO of Subaru’s automotive division. Developments in the investigation are ongoing, and so far, Subaru announced that it would recall an additional 100,000 vehicles after discovering that the inspection of the braking system wasn't performed in compliance with quality control regulations.
The head honcho ensured that this is the final recall connected to the inspection scandal, and Subaru will pony up 6.5 billion yen in costs related to fixing these vehicles. Converted to U.S. dollars, that sum translates to no less than $57 million.
But this isn’t the only trouble that Subaru has to face. Last month, the automaker announced that it would recall 400,000 vehicles to fix a flaw with the valve springs of the engine found in the Impreza and Forester. To make matters worse, Subaru is also preparing for a hike in tariffs on Japanese imports, which would raise the price of several popular models in the United States of America, including the Forester.
Turning our attention back to the recall extension, the automaker did mention that those 100,000 vehicles were manufactured in Japan for the Japanese domestic market between January 9th, 2018 and October 26th, 2018. As a result of this development, the total number of recalled vehicles now reaches 530,000 units.
On that note, care to guess what the higher-ups have to say about the situation they're in? “Subaru sincerely apologizes to its customers and stakeholders, and also to the wider public, for the concern and inconvenience caused.”
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