Mitsubishi Motors overstated fuel economy on eight other models

by SpeedLux
A Mitsubishi Motors logo is seen on display at the New York International Auto Show in New York City

Mitsubishi Motors overstated the fuel economy on 8 of its automobile models, along with 4 others the embattled Japanese automaker admitted to previously this year, the Nikkei paper reported on Tuesday.

Japan’s transportation ministry, which had actually been investigating the fuel economy on Mitsubishi models including the Pajero SUV, would report its findings as early as Tuesday, the Nikkei stated, mentioning an unnamed source.

The Nikkei stated the automaker would likely withdraw the afflicted automobiles from the marketplace to modify its brochures, a procedure which could take about two to three weeks. Compensation to consumers was a possibility, it added.

Both Mitsubishi and the transport ministry refused to comment on the report. Shares in the car manufacturer slipped 0.8 percent in early trade.

Japan’s sixth-largest car automaker has been having a hard time to recover after confessing in April that it had falsified the fuel economy on two of its minivehicle designs, in addition to two comparable designs produced for Nissan Motor.

The scandal resulted in a suspension of sales for almost 3 months, and prompted a downturn in Mitsubishi’s market price. The company sought financial help from Nissan, which agreed to purchase a controlling one-third stake for $2.2 billion.

An internal investigation has revealed bad interaction, slack governance and pressure on resource-starved engineers at the root of Mitsubishi’s issues.

Mitsubishi stated last month that the resulting downturn in domestic sales caused a 75 percent plunge in first-quarter operating profit, while the company stated it booked an amazing loss of 125.9 billion yen ($1.24 billion) in the first quarter as a result of the cheating.

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