[Business] Mitsubishi Motors Admits Manipulating Fuel Consumption Testing

[lioneatszebra]

Mitsubishi Motors Admits Manipulating Fuel Consumption Testing
from NASDAQ

Japanese automaker Mitsubishi Motors Corp. (MMTOF.PK, 7211) has admitted manipulating fuel economy data for about 625,000 vehicles sold in Japan.

"In connection with the certification process for the mini-cars manufactured by MMC, we found that with respect to the fuel consumption testing data submitted to the Ministry of Land, Infrastructure, Transport and Tourism or MLIT, MMC conducted testing improperly to present better fuel consumption rates than the actual rates; and that the testing method was also different from the one required by Japanese law. We express deep apologies to all of our customers and stakeholders for this issue," Mitsubishi Motors said.

The applicable cars are four mini-car models, two of which are the "eK Wagon" and "eK Space" which have been manufactured by Mitsubishi Motors; and the other two are the "Dayz" and "Dayz Roox" which have been manufactured by Mitsubishi Motors and supplied to Nissan Motors Corporation

Nissan Motors requested Mitsubishi Motors to review the running resistance value set by Mitsubishi Motors during tests by Mitsubishi Motors. In the course of internal investigation upon this request, Mitsubishi Motors said it learned of the improper conduct that Mitsubishi Motors used the running resistance value for testing which provided more advantageous fuel consumption rates than the actual rates.

Mitsubishi Motors has decided to stop production and sales of the applicable cars. Nissan Motors also has stopped sales of the applicable cars, and Mitsubishi Motors and Nissan Motors will discuss compensation regarding this issue.

During its internal investigation, Mitsubishi Motors has found that the testing method which was different from the one required by Japanese law has been applied to other models manufactured by MMC for the Japanese domestic market.

Mitsubishi Motors noted that it will also conduct an investigation into products manufactured for overseas markets.

Mitsubishi Motors plans to set up a committee consisting of only external experts. It will publish the results of its investigation as soon as it is complete.