Menu Search Facebook Twitter
Search Close
  • Capital Coahuila
  • Capital Hidalgo
  • Capital Jalisco
  • Capital Morelos
  • Capital Oaxaca
  • Capital Puebla
  • Capital Quintana Roo
  • Capital Querétaro
  • Capital Veracruz
  • Capital México
  • Capital Michoacán
  • Capital Mujer
  • Reporte Índigo
  • Estadio Deportes
  • The News
  • Efekto
  • Diario DF
  • Capital Edo. de Méx.
  • Green TV
  • Revista Cambio
Radio Capital
Pirata FM
Capital Máxima
Capital FM
Facebook Twitter
X Welcome! Subscribe to our newsletter and receive news, data, statistical and exclusive promotions for subscribers

Mitsubishi Expects $1.4 Billion Loss After Mileage Cheating

The automaker has repeatedly promised to fix its ethical standards

Mitsubishi Motors Corp. Chairman and CEO Osamu Masuko, left, and President Tetsuro Aikawa, right, prepare their press conference in Tokyo, photo: AP/Eugene Hoshiko
By The News Whatsapp Twitter Facebook Share
2 years ago

Mitsubishi Motors Corp., which recently acknowledged it inflated mileage on its models, is forecasting a 145 billion yen ($1.4 billion) loss for the fiscal year through March 2017.

The Japanese automaker said Wednesday vehicle sales will drop around the world, especially in Japan, where it expects a 41 percent plunge.

The projected loss is a reversal from the 72.6 billion yen profit for the fiscal year ended in March.

Japan’s government found Mitsubishi had overstated mileage on its vehicles by up to 16 percent. Tokyo-based Mitsubishi Motors had a systematic way of cheating on mileage for eK minicar models, including those it supplied to Nissan Motor Co.

Mitsubishi says it didn’t lie about mileage on models sold overseas.

Nissan has said it is taking a 34 percent stake in Mitsubishi to help its turnaround, although Chief Executive Carlos Ghosn reiterated to shareholders Wednesday that the deal was not final until “due diligence,” and Nissan was checking into Mitsubishi.

Mitsubishi Motors said last week it will give 100,000 yen to each Japanese owner of a car with a false mileage claim to compensate for the extra gas costs and for inflating the mileage figure.

Such compensation will cost Mitsubishi 50 billion yen, and payments to Nissan and other suppliers will cost another 100 billion yen, it said Wednesday.

Slipping sales and expenses related to free inspections and other services in Japan will lower its operating profits by 55 billion yen, it said.

Mitsubishi’s latest scandal follows its massive and systematic cover-up of defects that surfaced in the early 2000s, which had spanned decades. The automaker has repeatedly promised to fix its ethical standards. The company’s president has stepped down to take responsibility for the new scandal.

Comments Whatsapp Twitter Facebook Share
More From The News

UAEM consolidates academic and scientifi ...

16 hours ago
Latest News

Thousands attend vigil for California mu ...

3 days ago
Latest News

Earthquake in Peru destroys dozens of ho ...

3 days ago
Latest News

Missile-alert mistake feeds doubts about ...

3 days ago
Most Popular

New Gmail Plug-in Helps You Write Better ...

By The News

World Stocks Mixed as Investors await mo ...

By The News

Saudi arrests of princes consolidates an ...

By The News

Redesigned Chevy Silverado pickup loses ...

By Developer

France vs. fake news offers test case fo ...

By Developer