Mitsubishi admits to cheating fuel figures

File picture: Issei Kato / Reuters.

File picture: Issei Kato / Reuters.

Published Apr 20, 2016

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Tokyo - Mitsubishi has found itself embroiled in a major scandal after admitting that it manipulated fuel-efficiency tests in more than 600 000 of its vehicles.

Shares in the company plunged more than 15 percent after the news broke on Wednesday, the stock's biggest one-day drop in almost 12 years.

The embarrassing revelation comes in the wake of a massive pollution-cheating scandal at Volkswagen that erupted in September and which the German giant is still struggling to overcome.

Mitsubishi said it would halt production and sales of the affected vehicle models - about 625 000 mini-cars, including ones which Mitsubishi produces for Nissan. The rigged figures were discovered after Nissan found inconsistencies in fuel-economy data and reported it.

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Mitsubishi has warned that the number of affected vehicles would likely rise and that it would launch a probe into cars it sold in overseas markets.

"We found that with respect to the fuel consumption testing data... (the company) conducted testing improperly to present better fuel consumption rates than the actual rates," Mitsubishi president Tetsuro Aikawa told a Tokyo news briefing.

He added that the testing method was "different" from one required by Japanese law, and warned that the carmaker's bottom line would take a hit.

"This is not a simple problem and we need time (to assess the impact)," Mitsubishi's top executive said. "But I'm sure there will be an impact. The damage will be big."

However, this is far from being the first fuel figure scandal in the automotive world, a notable example being Hyundai and Kia's exaggerated fuel efficiency figures for 2012 and 2013 US models, which led to a $100 000 fine.

AFP

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