Subaru Corporation announced on Monday it plans to expand its domestic vehicle recall after more cases of faked final inspections emerged in recent months, according to local reports.
The company's inspection scandal first broke out in October last year when the automaker announced the recall of around 395,000 vehicles after it revealed that final vehicle inspections at its domestic assembly plants had been carried out by unqualified staff over a period of many years. The results of final inspections had also been faked.
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In this latest episode, Subaru is recalling a further 100,000 vehicles, including its popular Impreza sedan, after it found that final tests for components including brakes were not conducted properly. Vehicles exported are not affected as these are rechecked on arrival in their respective markets.
The carmaker cautioned the rising cost of recalls would shrink its annual earnings by a quarter in the current financial year. Its share price plunged 5% after the news, bringing the year to date price decline to 20%.
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By GlobalData
