Japan’s Subaru recalls more cars, cautions lop off on annual profit

November 6, 2018

TOKYO: Japan’s Subaru Corp said it would recall more vehicles sold in the 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 per cent to a four-year low 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 at home, including its popular Impreza sedan after discovering that performance tests for components including brakes were not conducted properly. Vehicles sold overseas will not be affected.
The automaker expects to incur $57 million in costs related to the recall. — Reuters