Mitsubishi Motors Accepts Manipulating Fuel Economy Tests in Japan
Highlights
- The manipulated tests affect 6.25 lakh cars from Mitsubishi and Nissan
- Mitsubishi's share value dropped by 15% due to the manipulation scandal
- The production for the affected models has been currently suspended
The issue came to light when Nissan found differences in test results in cars supplied by Mitsubishi Motors. The company was asked to investigate the matter, and it led to the discovery of the improper conduct of cars, while the manipulated tests also did not meet the prescribed standard under the Japanese law.
In a statement, Mitsubishi said, "We found that with respect to the fuel consumption testing data ... Mitsubishi Motor Corporation conducted testing improperly to present better fuel consumption rates than the actual rates and that the testing method was also different from the one required by Japanese law. We express deep apologies to all of our customers and stakeholders for this issue."
The issue has affected Mitsubishi Motors both in finances and in repute with the manufacturer's shares down by 15 per cent in Tokyo, its lowest in almost 12 years. Moreover, the company now needs to check if the cars sold overseas face such inaccuracies. This could only lead to the company more negative attention from other markets, not to mention several law suits, penalties and fines. The automaker plans to setup an external committee to investigate the matter.
Mitsubishi has already been struggling to leave a mark in the auto world globally and this does come as a huge blow to its future plans. Since Volkswagen's dieselgate scandal regarding false emission results broke out last year, automakers have been under extreme scrutiny world oer. Previously, it was Hyundai and its sister concern Kia, as well as Ford Motor Company that were found to have manipulated testing or reporting on the fuel efficiency figures. At present, the company has stopped production of the cars affected and will be discussing the compensation with Nissan.
Last Updated on April 20, 2016