The Mitsubishi Motors Corporation had confessed that it fabricated the fuel economy test data to make the emissions ranks look more auspicious, and its shares slumped over 15%, wiping 1.2 billion dollars from its market value today.
Tetsuro Aikawa, who is the president of Japan’s 6-largest automaker by market value, had presented an apology at a news conference in Tokyo for what’s the biggest scandal at the Mitsubishi Motors since a defect cover-up from over a decade ago.
The Shares in company closed down over 15% at 733 yen, the stock’s biggest 1-day drop in around 12 years.
Mitsubishi Motors, in 2000 exposed that it had covered up the safety records & complaints of the customers. 4 years later it had confessed to broader the problems going back decades. It’s Japan’s worst automotive recall scandal at time.
On Wednesday, the company said that the test manipulation had involved 625,000 vehicles that were produced since mid-2013, including its eK mini-wagon along with 468,000 similar cars that it made for the Nissan Motor.
It stated that it’d stop making and selling those cars, and also has set up an independent board to investigate this issue.
Last year, the Mitsubishi Motors had sold just over 1 million cars.
Mitsubishi Motors is the 1st Japanese automaker to report the misconducts involving the fuel economy tests since the Volkswagen was exposed last year to have cheated the diesel emissions tests in US & elsewhere.
Hyundai Motor Co, the South Korean car makers and the affiliate Kia Motors Corp in 2014 had agreed to pay 350 million dollars in penalties to the government of the United States for exaggerating their vehicles’ fuel economy grades. They have also resolved the claims from the car owners.