Subaru CEO Steps Down Amid Emissions Scandal

Industry News

The Japanese automaker has admitted to more emissions data cheating.

Volkswagen isn’t the only automaker experiencing the repercussions of an emissions scandal. Back in April, Subaru admitted employees had been altering fuel economy and emissions data during final vehicle inspections following an internal investigation. 903 vehicles were initially believed to have been affected in the scandal, but that number has now nearly doubled. This week, the Japanese automaker admitted to more emissions data cheating. An additional 927 affected vehicles have been discovered, bringing the total to 1,551.

Affected cars include the Impreza, Outback, and Forester. This revelation has prompted current Subaru president and CEO Yasuyuki Yoshinaga to step down from his position. Yoshinaga was slated to become the company’s chairman and continue serving as CEO at the company’s shareholder’s meeting on June 22, but will now serve as a non-representative chairman of the board. Yoshinaga has acted as Subaru’s chief executive since 2012. Tomomi Nakamura, an executive vice president and head of the American division, will replace Yoshinaga as president and CEO.

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Subaru also announced an internal investigation into “nonconforming conduct” will be conducted at its Gunma and Yajima plants in Japan, after discovering employees have been misreporting the emissions and fuel-economy figures. “The company is treating this matter with the utmost seriousness. At present, we have not yet completed a full inquiry into the specific conduct, including the causes, background and motivations of such conduct. As a matter of urgency, a thorough re-investigation will be carried out by external specialists,” Subaru said in a statement.

“Based on the results of the investigation into these issues, we will conduct a review of the company’s practices and, based on the findings of such review, implement appropriate measures to prevent any recurrence of these issues.” What’s perhaps surprising is that Yoshinga isn't being held responsible for the scandal and will be leading the investigation while also retaining responsibility for compliance and quality control.

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