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Posts Tagged ‘mitsubishi news’

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…)

Nissan Reports FY 2015 Profit Jump of 34.6%

Automaker expresses cautious optimism for 2016.

by on May.12, 2016

CEO Carlos Ghosn outlines Nissan's financial results for FY 2015: profits were up 34.6% last year.

Nissan’s takeover of Mitsubishi, in some measure, reflects the company’s successful 2015: Nissan Motors reported revenue of $101.4 billion and an operating profit of $6.6 billion … in short, it had the cash to make the deal happen.

Those figures represent increases of 7.2% and 34.6% respectively. The company earned a 6.5% margin on those earnings and net income of $4.4 billion. Globally, Nissan sold 5.42 million vehicles in the period, a 2% rise year-on-year.

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“These solid results reflect the success of our continuing product offensive, particularly in the North American market,” said Carlos Ghosn, president and chief executive officer. (more…)

Nissan Confirms Plan to Buy 34% of Scandal-Plagued Mitsubishi

Fire sale will give it control over smaller maker.

by on May.12, 2016

A "win-win," says Nissan CEO Carlos Ghosn - who also promises Mitsubishi "will change."

Nissan Motor Co. will take a controlling 34% stake in troubled Mitsubishi Motors for $2.2 billion, the two automakers confirmed on Thursday morning, something Nissan CEO Carlos Ghosn described as a “win-win” for both companies.

The announcement came on the same day the larger of the two makers announced that its earnings for the January-March period, the final quarter in its fiscal year, had dropped by 40%, largely due to weak sales and a strong yen.

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The decision to acquire a stake in Mitsubishi comes as the smaller maker continues to reveal damaging information about a secret effort to inflate its fuel economy numbers for as much as a quarter century. That scandal — ironically, triggered by concerns at Nissan over the mileage of cars it sells that are produced by Mitsubishi – have hammered the small maker’s sales and led to a more than 40% dip in its share price over the past month.

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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.

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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.

Global News!

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 Cheated on Mileage Numbers Since 1991

Probe could reveal significantly more problems.

by on Apr.26, 2016

The Mitsubishi three-diamond logo.

Mitsubishi Motors Corp. today admitted it has been falsifying fuel economy data since 1991, the embattled Japanese automaker’s president adding that an ongoing internal probe could uncover additional cheating.

The investigation was launched earlier this month when inconsistent test data was reported by Nissan Motor Co., which partners with Mitsubishi to produce the Dayz Roox, a microcar sold in Japan. A number of other vehicles sold in Japan have since been implicated.

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“We don’t know the whole picture and we are in the process of trying to determine that,” Mitsubishi President Tetsuro Aikawa said during a news conference in Tokyo on Tuesday.

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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…)