MORE WOES FOR MITSUBISHI MOTORS

MORE WOES FOR MITSUBISHI MOTORS

Tokyo: Mitsubishi Motors’ fuel economy scandal broadened yesterday as media reported the vehicle maker had submitted misleading data on at least one more model than disclosed and likely several others. 

Japan’s sixth-largest vehicle maker admitted this week it had overstated the fuel efficiency of 625 000 cars, wiping off around 40% of its market value, or $3.2 billion (R46bn) in three days. 

The revelations have prompted Japanese authorities to raid one of its research and development facilities while Standard & Poor’s warned its rating could be lowered further into speculative grade territory. 

Adding to fears the scandal will lead to ballooning compensation costs and fines, top Japanese government officials said Mitsubishi may have to reimburse consumers and the government if investigations find the vehicles were not as fuel-efficient as claimed. 

“This is a serious problem that could lead to the loss of trust in our country’s auto industry,” Transport Minister Keiichi Ishii told a news conference yesterday. 

He said he wanted Mitsubishi to look at the possibility of buying back the cars in question. 

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Weekend Argus