Mitsubishi confesses to cheat with fuel efficiency tests

Mitsubishi has confessed manipulating fuel economy information related to some 625,000 vehicles. The firm announced the news at a press conference today, stating that it was inspecting the staff members involved. The manipulated information apparently consists of vehicles falling under the Japanese category of kei car, a classification that can cover minivans, trucks, and passenger cars, however is reserved for cars that meet economical fuel usage standards and are consequently taxed at a lower cost.

Shares in Mitsubishi fell more than 15 percent following the news, eliminating $1.2 billion from the company’s market value. The manipulation does not appear to have actually been on the scale of Volkswagen’s emission scandal (which impacted some 11 million automobiles), the news contributes to the environment of wonder about over regulations covering the automaker industry. “This might be different from Volkswagen’s issue, however the market has actually ended up being really sensitive kind of news,” stated analyst Seiji Sugiura. “It might have a comparable effect in terms of sales and the firm’s credibility.”