Subaru Let Uncertified Workers Inspect Cars, Source Says – Bloomberg

Posted: Friday, October 27, 2017

Subaru Corp. allowed uncertified workers to inspect vehicles before shipment, according to a person with direct knowledge of the matter, the latest scandal to hit Japanese manufacturers after a similar issue was found at Nissan Motor Co.

An internal investigation found that workers training to be certified were involved in inspections at Subaru’s main factory complex in Gunma prefecture, the person said, asking not to be identified because the information is private, The person added the company may announce details as early as Friday.

The Nikkei newspaper reported the news earlier, saying Subaru has yet to determine whether a recall to re-inspect the vehicles is necessary, which could affect as many as 300,000 vehicles. Kyodo cited a company executive as saying the practice stretched back more than three decades.

Subaru shares fell 2.6 percent, the largest intraday decline since July, to 3,970 yen as of 9:24 a.m. Tokyo time.

This is the latest blight on Japan’s manufacturers. Nissan temporarily suspended production of vehicles for local sales after uncertified workers were found to have continued to carry out checks after the company identified the violation.

The country’s third-largest steelmaker Kobe Steel Ltd. said earlier this month that it falsified data on the durability of some products, prompting manufacturers of not just cars, but planes and bullet trains as well, to check for safety issues.

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