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Mitsubishi Motors Continues to Sag on Fuel Economy Scandal
Mitsubishi Motors Corp. says the impact of its fuel economy cheating scandal caused the company's net profit to drop 18% to 6.3 billion yen ($56 billion) in the fiscal third quarter ended Dec. 31.
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Mitsubishi Motors Corp. says the impact of its fuel economy cheating scandal caused the company's net profit to drop 18% to 6.3 billion yen ($56 billion) in the fiscal third quarter ended Dec. 31.
MMC lost 31 billion yen ($277 million) in the previous two quarters and predicts a full-fiscal-year loss of 202 billion yen ($1.8 billion).
A weaker yen and cost-cutting efforts slashed MMC a third-quarter operating profit 89% to 8.4 billion yen ($75 million). The company, which previously projected a 28 billion-yen operating loss for the full fiscal year, now expects an operating profit of 1 billion yen.
MMC’s net sales sagged 20% year-on-year to 477 billion yen ($4.3 billion) and are down 20% through the first three quarters.
Last April the company admitted it has inflated fuel economy ratings for several models for decades. The fuel economy scandal is the latest for MMC, which conceded in 2000 and 2004 that it had been hiding safety defects in its cars and trucks from consumers and regulators for nearly 30 years.
Nissan Motors Co. has since taken a 34% controlling stake in the company and vowed to clean up the company’s business practices.
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