Slammed over false fuel economy numbers, Japanese automaker Mitsubishi Motors is anticipating a sharp financial hit for the current fiscal year.
Mitsubishi now says it could report a loss of as much as $1.4 billion when it closes the books next March, a major swing from the $694 million profit, at current exchange rates, it originally forecast.
That reflects not only the slump in the maker’s sales since the scandal broke in April but also the cost of reimbursing owners of various models who had their mileage inflated in a bid to make the vehicles more competitive. But an ongoing investigation could force Mitsubishi to pay out still more if it confirms cheating on other vehicles. (more…)