BREAKING NEWS

BREAKING NEWS

Subaru cuts annual profit forecast on plant outage

Subaru cuts annual profit forecast on plant outage
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Jonathan Ernst(Reuters)
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TOKYO (Reuters) - Subaru Corp slashed its full-year outlook on Thursday as the Japanese automaker struggled with production and issues stemming from a defect in one of its components.

Japan's smallest major automaker said it now expects a full-year operating profit of 185 billion yen, instead of a previously expected 220 billion yen.

Subaru has been battered by a series of production issues ranging from faulty components to inspection do-overs which have stemmed from improper final tests on cars sold in the domestic market.

Last month, the maker of the Legacy sedan and the Forester SUV crossover halted production at its sole car factory in Japan for nearly two weeks, holding up roughly 60 percent of its global output after it found a suspected defect in a power steering component.

(Reporting by Naomi Tajitsu; Editing by Muralikumar Anantharaman)

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