Manipulation on Fuel Efficiency

Mitsubishi Motors announced on Wednesday that it had been falsely manipulated the data on fuel efficiency of its light automobiles. Although the carmaker does not have to recall those cars, this scandal may give it fatal damage in terms of compliance of a manufacturer. In the competition over car technology, not only fuel efficiency but automatic cruising or other cutting-edge system, Mitsubishi is questioned on its ability to survive.

Mitsubishi Motors revealed that it fabricated the data of fuel efficiency to make it higher by 5 to 10% than the actual ability. In the test operated by Ministry of Land, Infrastructure, Transport and Tourism, Mitsubishi submitted basic data manipulated in air resistance or friction of wheels. The ministry started inspection in Mitsubishi and ordered to report on details, based on Road Transport Vehicle Act.

Mitsubishi has already sold cars with wrong data between 2013 and now. Those cars include eK Wagon and eK Space of Mitsubishi, and Dayz and Dayz Roox supplied to Nissan Motors. Total amount of production of those four kinds of car will be 625,000. Mitsubishi and Nissan stopped their lines for those cars on Wednesday. “It is true that there was an intention to pretend our cars to be better,” told President of Mitsubishi, Tetsuro Aikawa.

The greatest damage on Mitsubishi is the fact that it could not find the manipulation by itself, but became aware with pointing from Nissan. When Nissan tested current cars for development of new model last November, it found significant gap between actual fuel efficiency and the data indicated in catalogue. Mitsubishi had been known as lagging behind in fuel efficiency, compared to top runners like Toyota or Honda.

Mitsubishi experienced a crucial scandal of concealing a number of claims from users early 2000s, which might lead to recall of 690,000 cars. As a result of leaving false cars, some passengers in Mitsubishi cars had accident of collision. Car sales of Mitsubishi declined significantly after the scandal and it had financially been supported by banks or other companies in Mitsubishi group. It is fair to say that consecutive scandals proved concealing nature of the company.

Stock price of Mitsubishi Motors immediately dropped in Tokyo market on Wednesday. Additional compensation for the users will be necessary. Japanese government has tax reduction system on ecological cars with high fuel efficiency. Mitsubishi might have to pay for that tax unpaid to local government. German government demanded Mitsubishi report on the details. The scandal will also affect its overseas sales.