Subaru to Invest 150 B. Yen to Improve Quality

July 11, 2018

Tokyo- Subaru Corp. said Tuesday it will invest 150 billion yen over the next five years to improve vehicle quality.

The investment is designed to help the Japanese automaker restore customer trust after a string of scandals, including vehicle inspections by unqualified workers, came to light starting in autumn last year.

The spending will cover such measures as boosting the number of personnel in charge of product quality management.

"I want to make Subaru a company that never repeats a mistake," President and Chief Executive Officer Tomomi Nakamura told a press conference.

Subaru was ordered by the transport ministry to submit a report in about a month when the company disclosed the discovery of misconduct in its vehicle fuel economy and emission tests on June 5.

Asked about being behind schedule, Nakamura said, "A thorough investigation is the most important thing."

The automaker aims to boost its global vehicle sales by 20 pct to 1.3 million units in fiscal 2025, which ends in March 2026, compared with its fiscal 2018 plan.

While maintaining the current annual sales level of 150,000 units in Japan, Subaru predicts growth in other parts of Asia as well as North America.

The automaker set a goal of eliminating traffic accident-related deaths involving Subaru cars in calendar 2030. It aims to improve vehicle safety using advanced telecommunications and artificial intelligence technologies.

Subaru also plans to make connected vehicle sales account for over 80 pct of its sales at major markets by fiscal 2022. Jiji Press