Subaru’s Vehicle Inspection Scandal Expands

June 6, 2018

Tokyo- Subaru Corp. said Tuesday that it has found additional improper cases in fuel economy and emissions tests conducted for its finished vehicles.

Although tests to measure fuel economy and collect emissions data were conducted under conditions that deviated from state-set standards, Subaru did not carry out makeup tests for a total of 934 vehicles, the major Japanese automaker said.

Specifically, the company failed to meet criteria such as those relating to running speed and inspection room humidity.

Subaru President and Chief Executive Officer Yasuyuki Yoshinaga has been slated to quit as president and step aside to chairman while retaining the post of CEO after the firm's general shareholder meeting on June 22.

Due to the newly found irregularities, however, he will resign also as CEO to clarify his management responsibility for the wrongdoing, while assuming the position of chairman as planned, the company said.

Subaru's incoming president, Tomomi Nakamura, is set to double as CEO, Subaru said.

"The improper tests should never be tolerated in terms of compliance," Yoshinaga said at a press conference at the company's head office in Tokyo on Tuesday.

Sorting out all problems facing the company is "an urgent task," he said, suggesting that he will work hard to revamp its corporate culture after becoming chairman.

In late April, Subaru said it confirmed fuel economy and emissions data manipulation for a total of 903 finished vehicles.

Tuesday's announcement brought the total number of Subaru vehicles affected by quality control problems to 1,551 units.

As the company has taken preventive measures, there is no chance of the scandal expanding further, Yoshinaga said. He also stressed that there are no quality or safety problems in the vehicles affected by the newly found misconduct.

The additional cases were discovered during an internal check conducted after the transport ministry carried out an on-site inspection of a Subaru plant in Gunma Prefecture, eastern Japan, in mid-May.

The ministry urged the company to investigate details of the additional cases and report the results in about a month.

At Subaru, it has also been found that finished vehicles were inspected by unqualified workers.

The latest findings look certain to undermine Subaru's corporate image further. Yoshinaga warned that the Subaru brand would be severely hurt if more irregularities are discovered. Jiji Press