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Posts Tagged ‘Mitsubishi mileage scandal’

Ghosn Likely to Lead Mitsubishi Board After Acquisition

Adding Mitsu may put Renault-Nissan at top of the sales heap.

by on Oct.19, 2016

Carlos Ghosn is likely to be named chairman of Mitsubishi Motors after Renault-Nissan acquires a controlling stake in the maker.

Renault-Nissan CEO Carlos Ghosn appears to be adding another title to his business card: Chairman of Mitsubishi Motors Corp.

The move, reported by Reuters, is expected to come after Renault-Nissan completes the $2.2 billion acquisition of a controlling stake – expected to be about 34% – in Mitsubishi in the weeks to come. Ghosn will helm a company, Mitsubishi, whose shares have fallen more than 40% this year.

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Ghosn, who helped pull Renault out of a financial ditch in the 1990s and improve Nissan’s earnings in the decade following, orchestrated the ongoing purchase of Mitsubishi after its sales plunged in the wake of its fuel economy rating crisis earlier this year. (more…)

Japanese Government Raids Mitsubishi Headquarters

Maker's internal investigation prompted action, officials say.

by on Sep.02, 2016

Japanese officials raided Mitsubishi's headquarters and a plant in Nagoya, Japan, as part of an ongoing investigation about the company's mileage scandal.

Not long after announcing it lied about the fuel economy ratings of even more vehicles, Mitsubishi Motor Corp.’s nightmare continued as Japanese authorities raided the company’s headquarters to seize documents and information for an ongoing investigation.

Government officials also raided the company’s plant in Nagoya as part of the effort.

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“We want to thoroughly investigate the circumstances that led to this situation,” said Transport Minister Keiichi Ishii, according to Reuters. (more…)

Mitsubishi Panel: Corp. Culture Ruled Out Saying “No”

Maker faulted for “not having manufacturing philosophy of an automaker.”

by on Aug.02, 2016

Nissan CEO Ghosn (l), and MMC Chairman Masuko.

Despite being faced with impossible goals and a shortage of resources, engineers at Mitsubishi Motors Corp. were caught up in a corporate culture that wouldn’t allow them to say, “No,” according to an internal investigation of the maker’s fuel economy cheating scandal.

The report, compiled by a team of outside investigators, had harsh words for the scandal-plagued automaker, which admitted in April it had rigged mileage numbers on vehicles sold in Japan for as much as a quarter century.

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“There was utterly no consciousness that the company must work as one to make and sell cars,” according to the 37-page report. Mitsubishi, it concluded, is a company “not having the manufacturing philosophy of an automaker.”


Mitsubishi Spending $600 Mil to Compensate Owners for Mileage Scandal

Owners to receive about $1,000 each.

by on Jun.17, 2016

Mitsubishi plans to spend $600 million to compensate owners of vehicles with false mileage numbers.

Owners of four Mitsubishi models involved in a mileage cheating scandal will receive nearly $1,000 apiece in compensation, a move expected to cost the embattled automaker around $600 million.

The automaker revealed in April that it used illegal testing procedures to inflate the fuel economy numbers of the four microcar models – two of which were sold under Nissan nameplates. The scandal led to a sharp slump in Mitsubishi sales and ultimately forced the Japanese maker to sell a controlling stake to Nissan.

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The compensation program covers not only the four initial products confirmed to have inflated mileage numbers, but also five others that had less of a gap between their stated and actual mileage. Mitsubishi now has acknowledged rigging the numbers for some models going back as long as 25 years. (more…)

Nissan May Use MPG Scandal to Take Control of Mitsubishi

Japanese news reports say Japan’s 2nd-largest maker wants major stake in rival.

by on May.12, 2016

Could Nissan Chief Executive Officer Carlos Ghosn be the next leader of Mitsubishi?

Japan’s second-largest automaker, Nissan Motors, may seek a major stake in embattled Mitsubishi Motors, using the smaller maker’s fuel economy cheating scandal as a way to take control at a bargain price.

Reports by Japanese broadcaster NHK and others indicate Nissan is in talks to take a one-third stake for about $1.8 billion. The share price of Mitsubishi has fallen by nearly half during the past month, in the wake of initial reports that the ninth-largest Japanese automaker inflated the fuel economy numbers of four vehicles it produced for the home market. Two of those were sold by Nissan.

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On Wednesday, senior officials released results of a preliminary internal report noting that fuel economy “was improperly calculated in nine other models currently sold in Japan, as well as in other models no longer sold in Japan.” (more…)

Mitsubishi Reveals it May Have Rigged Mileage Numbers on All Japanese Models

But carmaker insists U.S. mileage numbers are accurate.

by on May.11, 2016

Mitsubishi officials acknowledged today that all of its mileage ratings on vehicles in Japan for the last 25 years may have been falsified.

The mire Mitsubishi Motors Corp. has fallen into continues to worsen as the embattled Japanese automaker today acknowledged it may have cheated on the fuel economy of all the vehicles it has sold in Japan in recent years.

The maker last month admitted it had rigged mileage tests for at least some of its models going back 25 years. Industry analysts are warning that if the latest revelations prove accurate, the company could be forced to compensate its customers to the tune of nearly $1 billion. The company could also face hefty fines and even criminal penalties as the result of an ongoing Japanese investigation.

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The latest revelations focused on vehicles sold only in the Japanese market. Mitsubishi has so far said it did not rig mileage tests for models sold in the U.S. or other export markets. But more information is expected to come to light through an ongoing investigation set to wrap up over the coming summer. (more…)

Mitsubishi Claims US Mileage Numbers Accurate

Maker's stock rebounds slightly, but still down nearly half since mileage scandal erupted.

by on Apr.28, 2016

Mitsubishi recently launched a new version of the Mirage in the U.S., emphasizing price and mileage.

Even as an internal investigation into fuel economy ratings fraud gets underway, Mitsubishi Motors Corp. claims the mileage numbers used for vehicles sold in the United States have been accurate.

That word comes just a day after the embattled Japanese automaker acknowledged it had inflated the figures for vehicles sold in its home market since at least 1991. Sales of Mitsubishi vehicles have plunged since the scandal broke earlier this month, while the maker’s stock price has fallen by nearly half.

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Mitsubishi is a relatively minor player in the American market, but coming in the wake of a series of industry ethics lapses – including the Volkswagen diesel emissions fraud and General Motors’ cover-up of a deadly ignition switch defect – the Japanese maker could face major fines and legal costs if it were found to be cheating in the U.S., as well.


Top Mitsubishi Execs Likely to Fall in Fuel Economy Scandal

Domestic sales tumble by half, raising concerns about maker’s viability.

by on Apr.27, 2016

It remains to be seen if the maker falsified data for other models, such as the 2017 Mirage.

The top two executives at Mitsubishi Motors Corp. are expected to resign in the wake of revelations that the sixth-largest Japanese automaker has been falsifying fuel economy data for as much as 25 years.

The company has acknowledged the scam, which was designed to make its microcar models more competitive in the mileage-minded Japanese market. But a new panel empowered to investigate the matter could reveal even more widespread cheating affecting vehicles sold beyond Japan’s borders.

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The impact of the scandal is quickly being felt by Mitsubishi, the carmaker reporting its domestic sales have tumbled by half since the cheating was first reported. That is raising concerns for the survival of the maker which, only a few years ago, was pulled out of a financial tailspin by a consortium of Japanese banks. (more…)

Mitsubishi Admits, Apologizes for Falsified Mileage Claims

Maker investigating to see if other vehicles impacted.

by on Apr.20, 2016

Mitsubishi's admission of falsifying mileage results comes on the heels of unveiling the new Mitsubishi Mirage G4 in New York.

Mitsubishi Motors Corp. is the latest automaker to join an ignominious, but growing, list of makers apologizing for issuing falsified fuel mileage information. The company’s senior executives outlined the problem and bowed in apology.

“The wrongdoing was intentional. It is clear the falsification was done to make the mileage look better. But why they would resort to fraud to do this is still unclear,” company president Tetsuro Aikawa told reporters, according to Associated Press.

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The wrong numbers came to light after Nissan Motor Co., which partners with Mitsubishi to produce the Dayz Roox: a micro car sold in Japan, pointed out inconsistencies in the testing data. Mitsubishi launched an investigation and found evidence that employees intentionally falsified test results. (more…)