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Japan Clears Mitsubishi to Resume Sale of Tainted Minicars
Mitsubishi Motors Corp. has been allowed to resume sales in Japan of four minicar models the company admits were marketed with bogus fuel economy ratings.
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Mitsubishi Motors Corp. has been allowed to resume sales in Japan of four minicar models the company admits were marketed with bogus fuel economy ratings.
Japan’s Ministry of Land, Infrastructure, Transport and Tourism tells reporters its tests show the affected models—two of which are branded as Nissan minicars—are 5%-15% less fuel efficient than advertised.
The agency says it won’t impose sanctions other than closer scrutiny of the company in the future. Stronger oversight will serve as punishment by delaying the cars from reaching the market, the ministry explains.
MMC acknowledges it inferred fuel economy ratings rather than testing the vehicles as specified by Japanese regulations. The company also admits it sometimes falsified data to improve the ratings for 20 models sold in Japan over the past 25 years under the Mitsubishi and Nissan brands.
Last week MMC said it was booking a 50 billion-yen ($480 million) charge to cover the cost of compensating owners of cars with the inflated efficiency ratings.
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