Subaru's Profits Drop After Recall

Subaru's Profits Drop After Recall

Last October Subaru revealed that certain steps were not followed properly during inspections on cars manufactured during a certain period of time. When detected, the series of mistakes led to a recall of nearly 400 thousand vehicles. The loss of customer and investor confidence as led to lower projected profits for at least a quarter of the year. 

To make matters worse, it appears that the uncertified technicians that were in charge of the final inspections had been doing so for several years. The impending recall will affect nearly all models for several years back, but the exact scope has yet to be seen. It's estimated that it may cost Subaru almost $225 million.

The specific part in question is a valve spring that could malfunction under wear, damaging the engine and affecting performance. We can expect the exact makes and models to be named and the first wave of recalls to be issued shortly. Our partners at Toth Collision Center here in Akron, OH urge all drivers who receive a notice to react quickly and make an appointment for repair or replacement ASAP.

Written By: Todd Hendrickson
Source: Reuters