Mexican Media Brands
Mitsubishi Predicts a Net Loss This Year
Mitsubishi Motors Corp. expects to report a net loss of 145 billion yen ($1.4 billion) in the fiscal year that began April 1, reversing an 89 billion-yen profit in the previous year.
#economics
Share
Mitsubishi Motors Corp. expects to report a net loss of 145 billion yen ($1.4 billion) in the fiscal year that began April 1, reversing an 89 billion-yen profit in the previous year.
The loss will be MMC’s first in eight years. The company says its revenue this year will likely plunge 16% to 1.9 trillion yen ($18 billion). Results have been hurt by a fuel economy ratings scandal that began three months ago.
Last week MMC said it would book a 50 billion-yen ($480 million) charge to cover the cost of compensating its customers in Japan for overstating the efficiency of 20 models—including some produced for Nissan Motor Co.—for at least a decade. The amount is in addition to 19.1 billion yen ($173 million) the company booked for scandal-related costs in the previous fiscal year.
Analysts say costs are likely to grow as the company compensates Nissan and its own suppliers for lost sales caused by the cheating. MMC says no affected vehicles were sold outside Japan.
RELATED CONTENT
-
Report Forecasts Huge Economic Upside for Self-Driving EVs
Widespread adoption of autonomous electric vehicles could provide $800 billion in annual social and economic benefits in the U.S. by 2050, according to a new report.
-
Enterprise Edges into Self-Driving Car Market
U.S. rental car giant Enterprise Holdings Inc. is the latest company to venture into the world of self-driving vehicles.
-
On Urban Transport, the Jeep Grand Wagoneer, Lamborghini and more
Why electric pods may be the future of urban transport, the amazing Jeep Grand Wagoneer, Lamborghini is a green pioneer, LMC on capacity utilization, an aluminum study gives the nod to. . .aluminum, and why McLaren is working with TUMI.