Header

Mitsubishi Motors office raided in Okazaki

Japanese officials have raided an office of Mitsubishi Motors following the revelation that the carmaker had falsified its fuel economy data.

Mitsubishi Motors office raided in Okazaki

Mitsubishi bosses apologised for the data falsification on Wednesday

The officials searched its plant in the central Japanese city of Okazaki.

Mitsubishi has admitted that employees altered data to flatter mileage rates on more than 600,000 vehicles.

A government spokesman said they were treating it as an “extremely serious case” and that it had ordered the company to submit a full report.

The authorities have set 27 April as the deadline for Mitsubishi Motors to hand over the report on the inaccurate testing.




Japan’s chief cabinet secretary, Yoshihide Suga said: “Based on [the findings from] the raid, and a report from the company, we would like to reveal the extent of the inaccuracies as soon as possible.

“We will deal with the situation in a strict manner and would like to make sure of the safety of cars.”

Akira Kishimoto, an auto analyst at JPMorgan told Reuters that he estimated the falsification could cost Mitsubishi more than 50bn yen ($450m; £313.8m), including payments to consumers, the costs of replacing parts and compensation to Nissan.

The troubles at Mitsubishi Motors are likely to get much worse now that the government has weighed in.

Japan’s transport ministry investigators have raided the research centre of the car-maker’s Nagoya plant, presumably to find out how these fuel-efficiency tests were falsified, and how much bigger the problem might be.

The government says that Mitsubishi has broken the trust of consumers and that it expects a report from the car-firm in the next week.




Estimates for how much this scandal will cost Mitsubishi are thought to be in the hundreds of millions of dollars – but the real damage will be to the company’s brand, still reeling from a defects scandal in the early 2000s.

Shares impact

Shares of Mitsubishi Motors were untraded on Thursday after a more than 15% drop following the company’s announcement on Wednesday.

Under the rules of the Tokyo Stock Exchange – where the company’s shares are listed – if no trades were made, they will be deemed to have closed at the indicated price for the next day’s trading session.

The indicated price on Thursday, at 583 yen works out to a 20% drop from Wednesday’s close of 733 yen.

Do you have more to share about this story – photos, songs or videos or even your own story etc. – you can send them to: (info@bjrlivefm.com) WhatsApp us +233578144277
Get our free BREAKING NEWS by subscribing to bjrlive fm by Email. Subscribe to our YouTube channel, Facebook and NEW Instagram page. Download our app for unlimited music/live event streaming here Join our BBM Channel by searching for bjrlivefm.com or simply add this PIN: C0045BC51.

You may also like ...

0