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Ghosn to Add New Duties as Chairman of Mitsubishi

“It is going to be difficult.”

by on Oct.20, 2016

Saving Mitsubishi "will require tough decisions," said new Chairman Carlos Ghosn.

Already serving as the CEO of both French automaker Renault, as well as its Japanese alliance partner Nissan, Carlos Ghosn will now become chairman of embattled automaker Mitsubishi.

It will put the Brazilian-born executive in a familiar role. He became chief operating officer at Nissan in 1999, following a $6 billion investment by Renault, and helped turned the then-struggling Japanese company around. Following a series of scandals, Mitsubishi now needs similar help.

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And it could also help boost give a big boost to the Renault-Nissan Alliance, adding just enough volume for the Franco-Japanese partnership to brush aside rival Toyota to become the world’s best-selling auto company.


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 Puts Off Outlander PHEV Until Summer 2017

Automaker pushing ahead with debut of Ground Tourer concept.

by on Aug.16, 2016

Mitsubishi is delaying the introduction of the 2017 Outlander PHEV until next summer.

Mitsubishi is pushing back the U.S. introduction of the plug-in hybrid version of its Outlander utility vehicle until next summer.

The PHEV version of the Outlander, which was unveiled at the New York Auto Show last spring, was originally scheduled for this fall. However, the plans have changed, according to Alex Fedorak, Mitsubishi’s director of communications.

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“Following a thorough evaluation process, we have determined that, in order to meet a level of competitiveness that will exceed customer expectations in the United States, the launch of the Outlander PHEV will be delayed until the summer of 2017,” he said in an email to (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.

Clearing the Air!

“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 Hints at High-End Plug-in with Ground Tourer Concept

New show car could signal big ute above the current Outlander line.

by on Jun.30, 2016

PHEV will debut at Paris Motor Show.

The 2016 auto show circuit has barely wrapped up but we’re already getting a first hint of what’s to come for the start of the 2017 season when Mitsubishi will roll into the Paris Motor Show with a new, high-end SUV concept.

Make that a premium plug-in prototype dubbed the Mitsubishi Ground Tourer, something the automaker calls “the latest expression of (its) design ambitions.”

All in the Concept!

Targeted to ride above the Mitsubishi Outlander, the Ground Tourer concept also “further expresses” the struggling Japanese automaker’s push into battery-electric propulsion, with a plug-in hybrid driveline meant to deliver “effortless cruising in all driving conditions on and off-road.”


Mitsubishi Expecting Major Profit Hit from Mileage Scandal

Damage could worsen.

by on Jun.23, 2016

Mitsubishi could post a $1.4 billion loss as a result of the lost sales and payouts due to the fuel mileage scandal.

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.

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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…)

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…)

Automakers Continue to Install Defective Takata Airbags on New Vehicles

And 2.1 mil defective inflators have been installed as replacements in older vehicles.

by on Jun.01, 2016

A Takata airbag after a crash.

(This story has been revised to include comments by FCA and Toyota.)

Even as federal safety regulators expand the ongoing recall of defective Takata airbags, four major automakers continue to install some of the potentially deadly devices on their newest vehicles, according to a new Senate report.

A number of manufacturers also are using defective Takata inflators as replacements for older airbags in about 2.1 million recalled vehicles. Federal regulators have approved that move as a temporary measure due to a shortage of replacements parts using newer, safer designs.

In the Know!

The four manufacturers that acknowledge they are continuing to use defective Takata bags in new products are Fiat Chrysler, Mitsubishi, Toyota and Volkswagen, according to the report released today by U.S. Senator Bill Nelson, the ranking Democrat on the Senate Commerce Committee.


Mitsubishi President Resigns in Wake of Fuel Economy Scandal

Nissan expected to play central role in reshaping senior leadership.

by on May.18, 2016

Mitsubishi President Tetsuo Aikawa tendered his resignation effective June 24, as the automaker struggles in the wake of its fuel economy reporting.

The fallout from the Mitsubishi fuel economy scandal spread to the Japanese automaker’s president, Tetsuo Aikawa, who is resigning from his job effective June 24. Executive Vice President Ryugo Nakao also resigned.

No successors have been named. Chairman Osamu Masuko survives, but is surrendering any compensation he earns until the company forms a new management team.

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Aikawa offered up his job at a press conference today, but did not admit to any wrongdoing related to the issue. Earlier this month, officials confirmed that the fuel economy data for its vehicles in Japan were falsified. (more…)

GM Slapped with Class Action Suit Over Misstated Mileage

Consumer Reports suggests company’s been overstating for years.

by on May.18, 2016

GM's put a stop-sale order on its 2016 large crossovers due to incorrect mileage figures on the window sticker.

General Motors has been hit with a proposed class action lawsuit over changes to its fuel economy calculations for three different vehicles as questions about its mileage claims continue to grow to nearly 2 million vehicles.

The expansion comes, in part, as Consumer Reports magazine suggests that the automaker has been incorrectly stating the mileage in these vehicles for several years. GM’s problems come on the heels of recent admissions by Suzuki, a former manufacturing partner of GM, and Mitsubishi that they had been skirting the system as well.

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The plaintiffs in the suit against GM, which was filed in Southern California, claim the apparently “fudged” numbers ding their wallets not only at the gas pump, but also in the value the vehicles. (more…)