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Posts Tagged ‘mitsubishi news’

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.

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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.

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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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