Subaru stopped production due to defects
January 23, 2019Subaru incurs losses because the company had to stop its plant in Japan, which accounts for 60% of the global production of car brand.
At the only Subaru car factory in Japan, work was stopped due to a defect found in the power steering mechanism. As a result, Japan’s sixth largest automaker stock fell nearly 7%.
According to the automaker, the defect could affect the Forester, Impreza and XV models. Production of other models was also stopped, since they are all going on the same line.
Subaru is already feeling the shock of stagnating sales in the United States and car reviews in Japan, which reduced the company’s profits by a quarter.
The company said that they still do not know how the stoppage of production will affect the revenues that fall for the third time in the last year. The production of cars reached 10 thousand cars and delays in deliveries to customers have already begun. In the meantime, Subaru has still not figured out the cause of the malfunction of the power steering.
Cars that may show this defect were manufactured at a factory in Japan from the end of December 2018 to January 16, 2019. It should be expected that all of them will be recalled after finding the cause of the fault. It should be noted that the testing and the second production of Subaru, located in the United States.
The previous shutdown of Subaru production in Japan occurred in 2011 and was associated with the Tohoku earthquake, after which electricity was cut off and component supply interruptions began.
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