Subaru tumbled into the red in the latest quarter amid spiraling costs for a series of recalls in Japan and other quality issues stemming from faulty vehicle inspections.
Subaru and Toyota are recalling 411,000 vehicles across the globe for a problem with the valve spring that could cause the engine to stall.
Subaru of America's venerable Outback crossover wagon had its weakest month of the year but the automaker was still able to eke out a sales gain in October.
The inspections violated transport ministry norms and eventually led to the recall of 395,000 vehicles.
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