Nissan to decide on the future of the partnership soon.
Mitsubishi is in trouble, big trouble. The company's shares are going down for fifth day, slashing the market value of the brand by half to about 427 billion yen ($3.8 billion).
It all started last week, when Mitsubishi announced it conducted emissions testing “improperly” to present “better fuel consumption rates than the actual rates.” It was then revealed the automaker has been using unorthodox fuel economy testing methods in Japan for the last quarter of a century and an investigation from external experts will be searching for more details.
Now, Automotive News Europe is reporting the company’s existence is at risk as it will soon “get into a situation where its survival is difficult.” These were the words of Mitsubishi president Tetsuro Aikawa, who also told reporters during a press conference on Tuesday that he is taking this “as a case that could affect our company's existence.” His mission will be to “solve the issue.”
What’s turning the situation into a crisis for the automaker is the fact that it has to compensate nearly 625,000 customers. “We aren't able to deal with customers,” Aikawa explained. “We're just telling them that we'll offer something.”
The marque is also in discussions about reimbursing Nissan, which was supplied about three-quarters of the affected mini-cars. Nissan CEO Carlos Ghosn announced on Monday that the company will soon decide on the future of the partnership with Mitsubishi.
Source: Automotive News Europe