Japan Bans Sale of 8 More Mitsubishi Motors Models

Japan’s transport ministry confirms it has ordered Mitsubishi Motors Corp. to halt sales in Japan of eight more models—three of them hot-selling SUVs—with overstated fuel economy ratings. News about the impending ban was reported yesterday by The Nikkei.

The ministry says its investigation showed the models were rated as much as 9% above their true fuel economy levels. Earlier this year MMC admitted that, for the past 25 years, it has based its ratings on estimates rather than actual tests.

The new batch of mislabeled vehicles includes MMC’s Mirage small car and Outlander, Pajero and RVR SUVs. They have been barred from sale until the company can relabel its marketing materials.

MMC says it will pay about 76,500 current owners of the affected vehicles as much as 100,000 yen ($972) in compensation to cover higher fuel and tax costs. The company made a similar gesture for owners of four minivehicle models discovered in April to carry inflated economy ratings.

MMC expects to report a net loss of $1.4 billion in the fiscal year that began April 1. Sales are likely to plunge by nearly 50%, resulting in a 55 billion-yen ($534 million) drop in operating income.