Short on the heels of the VW emissions scandal comes the news that Japan’s sixth largest vehicle maker, Mitsubishi Motors, admitted that they’re guilty of having intentionally supplied false test data as far as fuel economy on four of their models is concerned. This led to a sharp fall in share prices, wiping 15% off its market value immediately after the news broke.
Fortunately, for the moment at least, car values have been largely unaffected by the scandal. The sell my car online services allow you to check the value of your car instantly.
They rigged the data relating to tyre pressure readings to make mileage and thus fuel efficiency look better than it actually was. Mitsubishi president Tetsuro Aikawa apologised publicly to all customers and promised a thorough investigation by an independent panel. The company is looking at ways of compensating customers who have been misled. Production of the 4 models has been stopped until further notice.
Dogged by Controversy
Up to 625,000 mini-cars are affected and include the following: Mitsubishi Ek Space and Ek Wagon as well as two cars that they produce for Nissan: the Dayz and Dayz Rooks. The scandal broke after Nissan detected discrepancies in the data used to show fuel economy figures; preliminary findings have shown that this has been going on since mid-2013. It is not the first scandal that the Japanese carmaker has had to deal with. In 2000 the company admitted to covering up safety records and complaints from unhappy customers; it later also admitted to various other problems with their cars going back decades. It is a safe bet to say the company does not need the current scandal to add to previous woes. Japan’s transport ministry has undertaken to test all Mitsubishi cars’ fuel economy in the first week of May, with results expected in June. The ministry will, further to news of the scandal, test all Japanese carmakers’ fuel economy data.
Damage to the company’s image in the wake of the scandal, as well as that of the wider industry, is not easy to ascertain at this moment; however, Mitsubishi stands to lose millions in claims from customers, heavy fines and having to pay back tax incentives to the government. And, of course, without a doubt sales will be greatly affected too, especially as it’s not the first time they’re guilty of gross violations in terms of laws that govern the industry.
UK not affected
Right now, it seems, no vehicles in the EU and the UK are affected. Lance Bradley, Managing Director of Mitsubishi Motors in the UK has given customers this reassurance. So for now it seems only cars in Japan are affected. The public and all interested parties are following the unfolding of events with great interest, especially since the industry – not only Mitsubishi – has been rocked by negative publicity in recent years.