Subaru nearly halves profit forecast after faulty inspections

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TOKYO – Subaru Corp. Tuesday, the operating profit forecast for the period April-September almost halved due to the higher costs related to quality, following the fact that last year it did not follow the correct inspection steps that led to a recall of a vehicle.

The Japanese car manufacturer forecasts an operating profit of 61 billion yen ($ 542.7 million) for six months through September, compared to the previous estimate of 110 billion yen.

The company unveiled in October last year that non-certified employees had carried out the final tests of new cars for the domestic market for decades. The defective inspections violated the standards of the transport ministry and ultimately led to the recall of 395,000 vehicles.