Japan’s sixth-largest automaker by market value admits it “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 the Japanese law.
Mitsubishi explains that 625,000 vehicles are involved in the problem, including 157,000 eK Wagon and eK Space mini-cars and 468,000 Dayz and Dayz Roox vehicles, manufactured by the company and supplied to Nissan since June 2013.
The problem was discovered when Nissan reported inconsistencies in emissions data and Mitsubishi conducted an internal investigation to find that figures had been indeed falsified. The automaker says it will “sincerely respond” to customers “who own and use the applicable cars.”
Meanwhile, sales and production of the aforementioned models will be stopped and the two companies “will discuss compensation regarding this issue.” Mitsubishi adds that the same testing method has been applied to other models manufactured by brand for the Japanese domestic market. Also, an investigation into products manufactured for overseas markets will be conducted soon with results of it to be reported “as soon as it is complete.”
Yesterday, shares of Mitsubishi in Japan dropped 15 percent at 733 yen ($6.75), the stock’s biggest one-day drop in almost 12 years.
Tokyo, April 20, 2016
Improper conduct in fuel consumption testing on products
manufactured by Mitsubishi Motors Corporation (MMC)
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 (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.
The applicable cars are four mini-car models, two of which are the "eK Wagon" and "eK Space" which have been manufactured by MMC; and the other two are the "Dayz" and "Dayz Roox" which have been manufactured by MMC and supplied to Nissan Motors Corporation (NM) since June 2013. Up until the end of March 2016, MMC has sold 157 thousand units of the eK Wagon and eK Space and supplied 468 thousand units of the Dayz and Dayz Roox to NM.
Since MMC developed the applicable cars and was responsible for obtaining the relevant certifications, MMC conducted fuel consumption testing. In the process of the development for the next generation of mini-car products, NM examined the fuel consumption rates of the applicable cars for NM's reference and found deviations in the figures. NM requested MMC to review the running resistance(*) value set by MMC during tests by MMC. In the course of our internal investigation upon this request, MMC learned of the improper conduct that MMC used the running resistance value for testing which provided more advantageous fuel consumption rates than the actual rates. MMC will sincerely respond to our customers who own and use the applicable cars.
(*) running resistance: rolling resistance (mainly genrated by tires) and air resistance while vehicles are moving
We have decided to stop production and sales of the applicable cars. NM also has stopped sales of the applicable cars, and MMC and NM will discuss compensation regarding this issue.
During our internal investigation, we have 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.
Taking into account the seriousness of these issues, we will also conduct an investigation into products manufactured for overseas markets.
In order to conduct an investigation into these issues objectively and thoroughly, we plan to set up a committee consisting of only external experts. We will publish the results of our investigation as soon as it is complete.