Subaru plans to extend Japan recall count over inspection problem

Subaru Corp stated it plans to recall about 400,000 vehicles in Japan this month after discovering it had been following incorrect procedures for final inspections at domestic plants, broadening the count from a formerly estimated 255,000.

The company stated on Thursday it would broaden the scope of the recall as a safety measure, adding that costs connected with the concern would go beyond 10 billion yen ($88.18 million).

Last month Subaru stated that for over 3 decades, final inspections of new vehicles at its main Gunma complex north of Tokyo were in some cases done by inspectors who were not noted as qualified specialists, breaching transport ministry requirements.

The additional action does not impact product quality and is not required for vehicles exported overseas.

The discovery followed a similar oversight at Nissan Motor while Kobe Steel Ltd has been coming to grips with a data fabrication scandal, staining Japan’s track record for quality assurance.

Previously this week, Subaru stated the incorrect inspection procedures would likely lead to a negative effect of 10 billion yen for the year. The automaker is currently smarting from damaging sales in the United States, its biggest market, which has triggered a downgrade of its full-year operating profit forecast.