Suzuki and Mitsubishi affected by fuel consumption test scandals

18.05.2016

Suzuki Motor Corp reported that it used test methods for the fuel efficiency of its vehicles in Japan that does not comply with the rules, however, it assured that the proper checks have shown that the data does not need to be adjusted.

The news followed the recognition of Mitsubishi Motors in the falsification of the results of tests of fuel consumption as a result of which the Japanese Ministry of Transport has asked the automaker to re-submit the data for all of its vehicles until Wednesday.

The fourth-largest automaker of Japan reported that there are affected 2.1 million vehicles, but CEO Osamu Suzuki told reporters that officers used inappropriate data unintentionally.

"The company apologizes for the fact that we do not abide by the rules set by the authorities", - he said.

Suzuki shares finished Wednesday trading lower by 9.4 % after the company reported the irregularities, but it was before the press conference. At some point, they dropped 15 %, dropping to the lowest level since November 2013.

The automaker said that it plans to continue to sell their cars, taking into account that the new data did not differ much from the previous ones, adding that it is not waiting for a strong impact of the scandal on profits.

For Mitsubishi consequences were much more serious. The President of Mitsubishi Motors Corp. Tetsuro Aikawa should leave his post on June 24, is said in the automaker's statement. According to The Financial Times, Aikawa took responsibility for the scandal.

Aikawa resignation was expected especially after Nissan last week agreed to buy 34% stake in Mitsubishi Motors for 237 billion yen ($ 2.18 billion). After completion of this transaction, Nissan will be the largest shareholder in Mitsubishi Motors.

Nissan CEO Carlos Ghosn expects that the current Chief Executive Officer of Mitsubishi Motors, Osamu Masuko, will serve as president of the company to form a new management team, the article says.

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