Financial loss comes after revelations of cheating on fuel economy tests.
Mitsubishi Motors will take an “extraordinary loss” of 19.1 billion yen ($173 million) over its fuel-economy scandal. The loss was announced today as an amendment to the company’s fiscal year 2015 results that were reported on April 27. At the time, Mitsubishi hadn’t yet determined just how much the issue would cost.
According to Japan Times, most of that cost will go toward compensating owners of cars whose economy was overstated.
As a result of this loss, Mitsubishi’s 2015 profit was revised down from 82 billion yen to 72.5 billion yen ($656 million). The company also is still evaluating how the economy scandal will affect earnings going forward, and says it can’t yet offer a forecast for fiscal year 2016; that estimate will be released, “as soon as it is available.”
Mitsubishi has been plunged into turmoil ever since the company admitted that it cheated on Japanese fuel-efficiency tests for 25 years, manipulating data to improve cars’ efficiency ratings. Though the scandal was at first thought to only affect certain minicars, an internal investigation revealed Mitsubishi had altered or falsified data on a wide range of cars for at least 25 years.
The scandal has already claimed Mitsubishi president and chief operating officer Tetsuro Aikawa. The Japanese automaker was also recently acquired by Nissan, which paid about $2.2 billion for a 34-percent stake of Mitsubishi.