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Suzuki latest to admit to falsifying fuel economy tests

Suzuki is the latest automaker to be snagged in the broadening scandal of fuel economy falsification. Reuters reports that the head of the Japanese industrial giant admitted that it did not use the proper standards when testing its cars for fuel consumption. "The company apologizes for the fact that we did not follow rules set by the country," said CEO Osamu Suzuki (pictured bowing to reporters), as reported by Reuters. Over 2 million Suzuki vehicles are estimated to be affected. However Suzuki maintains that the company did not intentionally lie or mislead the public or government regulators about its vehicles' economy figures. Japan's transport ministry has ordered domestic automakers to resubmit those figures this week. Though Suzuki withdrew from the North American automobile market nearly four years ago, it remains the fourth largest in Japan (following Toyota, Nissan, and Honda) with particular sales strength in the Kei car segment. Like Honda and Yamaha, the company makes a variety of motorized products, including motorcycles, ATVs, and marine engines. The revelation follows hot on the heels of Mitsubishi's falsification, which broadened in scope from a few Kei cars to every vehicle it has sold in Japan stretching as far back as 1991. The controversy lead to Nissan taking control of a third of Mitsubishi's stock. Prior to that, and on the other side of the world, Volkswagen admitted to engineering its diesel vehicles to cheat emissions tests. Government regulators around the world have launched investigations into numerous other automakers to see how much farther the growing epidemic of falsifying environmental credentials can spread. Related Video:

Suzuki has to take out $45M loan just to shutter US dealers

Bloomberg reports American Suzuki is set to borrow up to $45 million to to close its automotive dealerships and freshen up its it motorcycle and marine business. Suzuki Motor Corporation will loan American Suzuki the funds at three percent below the London Interbank offered rate in order to offer dealer owners a cash payment in exchange for voluntarily abandoning franchise agreements. The company's 216 dealers have 10 days to make a decision on the matter. Under the plan, Suzuki would give dealer owners half of what they're owed in one lump sum, and the dealers would then be able to pursue the remaining debt through the company's bankruptcy procedure.
U.S. Bankruptcy Judge Scott C. Clarkson granted American Suzuki interim authority to borrow the funds, but Bloomberg reports the company will likely return to court in a few weeks to seek up to $100 million. According to Richard Pachulski, a lawyer for Suzuki America, the automaker may owe its dealers somewhere around $50 million.

Suzuki Kizashi recalled due to pesky spiders

Spiders seem to love the fuel tanks of Japanese sedans. Mazda had to recall its Mazda6 twice for arachnid webs blocking their car's vent lines. Now, the Suzuki Kizashi is also being called in because spiders can block the car's evaporative canister vent hose, a condition which could cause excessive negative pressure in the tank, eventually leading to a crack and fuel leak. The campaign covers about 19,249 examples of the 2010-2013 model year Kizashi built from October 2009 through July 2012.
According to the automaker's defect notice released by the National Highway Traffic Safety Administration, the first report of a spiderweb blocking a vent line was in 2011. It began monitoring field data and found six more incidents from 2011 to 2013. In 2014, there was one more case, and with further investigation, Suzuki decided to initiate a recall. There are no reports of accidents or injuries of the webs causing accidents or injuries in the US.
In a similar move to Mazda, Suzuki is replacing the evaporative canister vent line with one that has a filter in place to keep the spiders out. Also, if the lines are obstructed by webs in a specific vehicle, the fuel tank will also get swapped. Scroll down to read the full recall announcement from NHTSA.