Society | Dec 20

Subaru orders skid 30% in Japan amid inspection scandal

Subaru's Japanese auto orders are on track to fall 30% on the year in December after uncertified workers were found in October to be conducting final vehicle inspections.

Orders tumbled more than 10% on the year in November, and are now "around 70%" of where they were a year ago, President Yasuyuki Yoshinaga told a news conference Tuesday. The automaker has filed a report with the transport ministry as part of an investigation into the scandal and released measures to prevent a recurrence. Costs including a recall of affected vehicles are expected to crimp profit by 20 billion yen ($177 million) starting in the current fiscal year ending in March. The company has refrained from discussing exactly how declining sales will impact earnings. Allowing workers to conduct final inspections on finished vehicles before receiving formal certification to do so was apparently common practice at Subaru's only Japanese plant, in Gunma Prefecture. The automaker swiftly rectified the situation after the scandal broke in October, retraining workers for two days in November. While this halted production lines temporarily, there was no major disruption to output. But the company's reputation has sustained heavier damage. Before the scandal, sales were going strong, fueled by a full redesign of Subaru's popular Impreza compact in 2016. Yet customers have kept their distance since October. A halt in television advertising has compounded this loss of trust. The recall, moreover, has distracted dealerships from the business of selling vehicles to the customers that do come by.


MORE Society NEWS

The Imperial Household Agency has announced that Princess Kako, the second daughter of the Akishino family, is scheduled to visit Greece in late May to promote international goodwill.

The Taiji Town Whale Museum in Wakayama Prefecture conducted a memorial service on Tuesday for marine mammals and fish that have died in captivity.

A startling projection has been unveiled, suggesting that if current trends continue, every Japanese person might eventually be named 'Sato'.

POPULAR NEWS

Four men have been arrested by Tokyo police for allegedly recruiting women for prostitution in the United States via a website, promising encounters with affluent clients and high earnings.

For the first time in 73 years, Japan has unveiled a newly constructed whaling mother ship, equipped with drone technology for whaling operations in the Antarctic Sea.

The Liberal Democratic Party (LDP) in Nara Prefecture has disciplined its former Youth Division Chief following a controversial dance party incident.

Residents of Japan's oldest student dormitory, self-managed for over 100 years, are digging in as Kyoto University attempts to evict them from the premises.

A Japan Airlines flight en route from Melbourne to Narita Airport encountered sudden severe turbulence on April 1, causing injuries to several cabin crew, including a broken leg.

FOLLOW US