Subaru Investigates Mileage Cheating

Subaru Corp. announced on Wednesday that it is conducting investigations on its inspectors. The investigation aims to determine whether data on mileage readings has been falsified during final inspections of the cars sold in Japan.

Subaru sign on white wall

Japanese broadcaster NHK’s allegations of falsifying fuel economy tests follows the independent report submitted by the carmaker. NHK said that Subaru might have altered the data in order to match data it reported to the Japanese government. There was no specific time period provided.

The Japanese automaker revealed in October that tests on its new cars has been conducted by uncertified staff. Those cars have been then sold on the domestic markets for decades. The company vowed on Tuesday that oversight will be improved.

Just last month, Subaru announced that it is recalling 395,000 vehicles in Japan. It then predicted related costs to reach 20 billion yen ($177 million).

The automaker claimed the root of the problem was that the management and staff underappreciated the final inspections’ importance.

Subaru released a statement on Wednesday that they were informed about the mileage cheating. Some inspectors told external investigators that data has been changed on some vehicles during the final checking process. The claimed fabrications taking place were not confirmed, the company said.

Subaru’s revelation is one of the series of compliance failings by Japanese companies in the recent months. This has hit the country’s reputation when it comes to quality control, prompting calls for better governance.

Shares Fall Down

Subaru shares dropped as much as 8.5 percent on Wednesday. This drop happened despite it being the most heavily traded stock by turnover on the Tokyo Stock Exchange.

Subaru’s latest report to the government stated that it will improve training for and monitoring of final inspections. It will also aim to communicate to the staff how important compliance is.

“We regret that, despite understanding the social demand for an emphasis on compliance, and the increased influence we have through our social presence, we had problems of compliance, carrying out inappropriate final inspections,” Subaru stated.

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