Company expects to post an "extraordinary loss" this year.

The fallout from Mitsubishi's fuel-economy cheating scandal continues to grow as the company has announced it will set aside 50 billion yen ($479 million) to compensate owners of affected vehicles.

While the figure is significantly smaller than amount that Volkswagen has set aside to cover the Dieselgate scandal, it's a pretty hefty sum for a relatively small automaker like Mitsubishi Motors.  In particular, the company said it plans to post an "extraordinary loss" this year as a result of fraud in fuel consumption tests.  The automaker went on to say that its fiscal results for 2017 also remain in question but it expects to get a better handle on things in the future.

Owners of models affected by the scandal are slated to receive a payment of between 30,000 and 100,000 yen ($287-$960).  The company is also on the hook for increased fuel consumption taxes as well as compensation to Nissan and various suppliers.

As a refresher, Mitsubishi has admitted to using “desktop calculations” instead actual tests to determine fuel economy rating for several different models sold in Japan between 2006 and 2016.  The company also used lowered resistance ratings on a handful of models which caused the fuel economy figures for affected vehicles to be significantly higher than what can be achieved in real-world driving.

Source: Automotive News

Be part of something big

Hide press releaseShow press release

(translated)


06, May 17, 2016
For the occurrence of loss due to fraud in fuel consumption test of our made vehicle
Our company, as payment costs to customers associated with the fraud in fuel consumption test of our made vehicle, because now expects to post an extraordinary loss as described below, we will inform you.
 
Record
 
1. The contents of the extraordinary loss
As payment cost to the customer of the Company and Nissan Motor Co., Ltd., is expected to record an extraordinary loss of about 500 billion yen in the year ended March 31, Financial Results 2017 fiscal year. Among them, as payment expense for the registered vehicles five models other than the light car four models, will include about 30 billion yen.
It is to be noted that the financial results in 2016 fiscal year ended March 31, as the payment cost to the customer of the Company and Nissan Motor minicars four models of the Corporation, is already provision to about 150 billion yen.
 
2. Future prospects
With regard to the business outlook of the 2017 fiscal year ended March 31, is the cost of the current in the scrutiny that occurs in addition to the payment to the customer, is expected to be published in the outlook became apparent stage.