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Fuel Economy Scandal Pushes MMC to Loss
The sales fallout from Mitsubishi Motors Corp.’s minicar fuel economy ratings scandal in Japan pushed the company to a net loss of 130 billion yen ($1.2 billion) in April-June.
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The sales fallout from Mitsubishi Motors Corp.’s minicar fuel economy ratings scandal in Japan pushed the company to a net loss of 130 billion yen ($1.2 billion) in April-June.
Revenue for the fiscal first quarter fell 14% to 429 billion yen ($4.1 billion). Operating income plunged 75% to 4.6 billion yen ($435 million), largely because the company was forced to halt production on minicars whose fuel economy performance had been falsified.
One sales bright spot: Strong demand for the midsize Mitsubishi Outlander crossover generated a 5% increase to 37,000 units in North America.
But MMC says its quarterly sales in Japan crashed 43% to 10,000 vehicles. Deliveries also fell in Europe (-15% to 47,000 units), Asia (-8% to 71,000) and other markets outside North America (-26% to 56,000).
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