Mit­subishi, too, Cheated on Fuel Emis­sion Tests

The Economic Times - - Companies -

The prob­lem af­fected about 625,000 ve­hi­cles, in­clud­ing mini-cars “eK Wagon” and “eK Space”, and the “Dayz” and “Dayz Roox”, which Mit­subishi pro­duces for ri­val Nis­san. “We’ve al­ways thought that the Volk­swa­gen emis­sions scan­dal would rum­ble on and now it looks like the dodgi­ness is not con­fined to the Ger­man car­maker,” said Joe Run­dle, head of trad­ing at Lon­don-based ETX Cap­i­tal. “Mit­subishi’s bomb­shell that it’s been fal­si­fy­ing (fuel-econ­omy) tests calls into ques­tion whether we have a much larger in­dus­try-wide scan­dal on our hands.”

The rigged fig­ures were dis­cov­ered af­ter Nis­san found in­con­sis­ten­cies in fuel-econ­omy data and re­ported it. Ja­pan's num­ber-two au­tomaker said it would halt sales of the af­fected cars. “To­day, we have no plans to change our re­la­tion­ship,” it added, re­fer­ring to its pro­duc­tion out­sourc­ing to Mit­subishi.

Mit­subishi sold more than a mil­lion ve­hi­cles at home and over­seas in its lat­est fis­cal year. "Tak­ing into ac­count the se­ri­ous­ness of th­ese is­sues, we will also con­duct an in­ves­ti­ga­tion into prod­ucts man­u­fac­tured for over­seas mar­kets," the car­maker said in a state­ment.

On Wed­nes­day, Mit­subishi shares plunged 15.16% to 733 yen af­ter lo­cal me­dia re­ported the faulty emis­sions tests. “This may be dif­fer­ent from Volk­swa­gen’s is­sue, but the mar­ket has be­come very sen­si­tive to such kind of news,” Seiji Sugiura, an an­a­lyst at Tokai Tokyo Re­search Cen­ter, told Bloomberg News.

Mit­subishi Mo­tors pres­i­dent Tet­suro Aikawa at a new con­fer­ence in Tokyo on Wed­nes­day

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.