Mitsubishi admits to falsifying test data for more favorable emission levels, causing company shares to fall, wiping off $1.2 billion from market value
Mitsubishi, the sixth largest Japanese car maker admitted Wednesday that their employees falsified test data results to present fuel economy of several vehicle models as more favorable. Already branded in the past for a massive recall cover-up 15 years ago, its market shares fell more than 15 percent shortly after the admission. This caused the company to lose $1.2 billion of their market value.
The vehicle models involved in the manipulation of results include 157,000 of its own-brand eK Wagon and eK Space mini passenger cars, as well as 468,000 Dayz and Dayz Roox vehicles they produce for competitor Nissan. These vehicles had tiny engines which produced great mileage and manufactured in March 2013.
The act had been uncovered when Nissan noticed data inconsistencies. This became the basis for an internal investigation that the company did to find out more. The investigation unearthed the falsification done to the tire pressure data which made the mileage more favorable.
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Tetsuro Aikawa, Mitsubishi company president, said to reporters in an interview, "The wrongdoing was intentional. It is clear the falsification was done to make the mileage look better. But why they would resort to fraud to do this is still unclear."
Aikawa and the company's other top executives bowed deeply in apology. Mitsubishi's president also said that he felt responsible although he had not known about these problems.
The manipulation of data caused a five to 10 percent boost in fuel efficiency in the models mentioned. Production and sales had been stopped in their tracks since the scandal erupted.
Nissan had come out with a statement saying that it had initially inquired with Mitsubishi when they had noticed the discrepancy in numbers. The former also said that Mitsubishi had admitted to them that their data had been intentionally falsified. Nissan has consulted with the transportation ministry which had instructed dealers to halt the sales of the affected vehicles. Presently, Nissan is also trying to come up with ways to help the owners of units which have already been sold.
It has been noted that the scandals which have been coming up periodically in Japan were with the intention of saving face for their company and not for individual monetary gain as with such scandals in the West.
This latest embarrassment involving an auto company comes after last year's cheating scandal involving Volkswagen, which manipulated diesel emission tests on their vehicles.
