Photographer: Akio Kon/Bloomberg

Subaru Bosses to Return Some Salary After Improper Inspection

Subaru Corp. managers including Chief Executive Officer Yasuyuki Yoshinaga will return part of their compensation after revealing improper final vehicle inspection practices spanning more than three decades.

Executives will give up their salaries for the four months through March 2018, Yoshinaga told reporters at a briefing in Tokyo on Tuesday. The automaker submitted a report to the transport ministry Tuesday outlining the causes of the misconduct and measures to prevent its recurrence.

“We will immediately alter from the very root a corporate culture that hasn’t adapted to the times in order to restore as much and as quickly as possible the trust of all stakeholders,” Yoshinaga said. “Our top priority is doing what we have to do, not how much it will cost.”

Subaru admitted in October that unauthorized personnel signed off on vehicles at its domestic plants, after a similar lapse was discovered at Nissan Motor Co. The revelations came at a time of snowballing quality scandals at Japanese manufacturers and suppliers, denting the industry’s once-unassailable reputation for quality. Both carmakers have said vehicle safety wasn’t compromised.

Read more about how Japan Inc. tarnished its reputation.

Subaru announced the recall of about 395,000 vehicles in Japan last month, including 19,000 of the “86” sportscar made for Toyota Motor Corp. Earlier it booked a 10 billion yen ($89 million) charge on the assumption of a 25,500-vehicle recall as it cut its full-year profit forecasts.

The inspection certificate is a requirement for cars sold locally, so exports weren’t affected.

    Before it's here, it's on the Bloomberg Terminal. LEARN MORE