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Subaru Recalls Hit Company in Wallet

» Posted May 22, 2019Resources | Share This Post

When carmakers allow defective vehicles to leave the plant, they put a lot of people at risk. That includes not only anyone who drives or rides in the car, but also anyone in the vicinity anytime the vehicle hits the road.

It turns out, defective vehicles can also put a car manufacturer’s financial health at risk.

Subaru’s profits dropped by half last year, a precipitous fall that the company says was a result of tumbling sales, pricey car recalls and other safety concerns. The carmaker’s Gunma plant in Japan stopped producing new vehicles for 12 days in January to address power steering problems in the Forester, Impreza and Crosstrek.

“Subaru’s total production decreased 5.8% to 989,000 units, for the Company’s Gunma plant, related factors including changes in plant operation schedules implemented since the fall of 2018 to ensure quality-first production and inspection work as well as production halt in January 2019 due to a defect in the Electric Power Steering unit,” the company said in a statement announcing Subaru’s financial performance.

Subaru shut down Gunma plant operations for nearly two weeks after discovering a defect in the electrical board of the Forester and other vehicles. The company said that flaw could make the steering wheel in those cars harder to operate.

The company announced three months later that it was recalling some 1.3 million Forester, Impreza and Crosstrek vehicles over brake light problems. It said silicone gas leaks could prevent brake lights from properly illuminating.

The California Lemon Law

Subaru may have taken a bigger financial hit than other carmakers, but its safety issues are unfortunately not uncommon. It’s important for car buyers and lessors in California to understand that state law offers some valuable protections to people stuck with a “lemon.”

The California lemon law obligates carmakers to perform certain repairs on vehicles while they’re under warranty. If those repairs are not effective, the carmaker is required to take it back and compensate the owner/lessor for the purchase price and other related costs. The manufacturer can also offer the option of a replacement car.

An experienced California lemon law attorney can guide you through the process of enforcing your rights under the law. The law makes auto manufacturers responsible for any legal fees you incur in enforcing your rights.  

Speak With a California Lemon Law Attorney

If you’re a California car owner who’s stuck with a lemon, there are a number of things that you can do to enforce your rights under state law. The California lemon law lawyers at the Bickel Law Firm can help.

We have decades of combined experience in cases involving defective vehicles, representing hundreds of clients across the state. Our lawyers understand the stress that can come with being stuck with an unsafe or malfunctioning car. That’s why we work aggressively to resolve these cases for the people that we represent.

Our offices are conveniently located in Los Angeles, San Diego and San Francisco. Call us at (888) 800-1983 or contact us online to speak with an attorney.


Hear What Our Clients Have To Say

"It took over a year but it got completed the way I had hoped from the beginning. These guys are professional keep you involved and educated throughout the entire process. They also maintain constant pressure on the manufacture. I could not of chosen a better firm to represent me. Thanks Bickel and more specifically Eric Young!"

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