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Mitsubishi fuel economy scandal will result in $1.39 billion loss

The fuel economy scandal revealed a couple months ago will cost Mitsubishi Motors a pretty penny. According to The New York Times, the Japanese automaker predicted the fiscal year 2016 will result in a loss of 145 billion yen, or $1.39 billion. We won't know for sure until March rolls around. The prediction is even more striking when compared to Mitsubishi's performance during the last few years. It will be Mitsubishi's first reported loss in eight years. In 2014, Mitsubishi reported a global profit of $1.2 billion, which doubled the profits of the previous year, and in the spring of 2015 the US arm of the manufacturer reported its first profits in seven years – $4.18 million. For a little while there, it seemed like things were looking really good for Mitsubishi, but past flaws caught up with it. Some of the models built have had their fuel economy readings rounded by as much as 15 percent, due to the way running resistance is calculated in laboratory conditions. Nissan swept in to buy one third of Mitsubishi, and under the Renault-Nissan alliance it is likely Mitsubishi will be put on a crash course to clear its name and start turning a profit again. But the bad publicity caused by the scandal will probably mean it'll be far in the future. Related Video:

Submit your questions for Autoblog Podcast #357 LIVE!

We're set to record Autoblog Podcast #357 tonight, joined by Jeff Glucker of the Hooniverse Podcast. You can check out the topics below, drop us your questions and comments via our Q&A module, and don't forget to subscribe to the Autoblog Podcast in iTunes if you haven't already done so. To take it all in live, tune in to our UStream (audio only) channel at 10:00 PM Eastern tonight.
Discussion Topics for Autoblog Podcast Episode #357
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Mitsubishi wants to bring a plug-in hybrid Montero to the US

As Mitsubishi's turnaround takes hold, we can talk less about the company's survival in the US market and more about what kinds of products we might see in the future: there's a hybrid Evo on the way and its joint venture with Renault-Nissan will deliver a C-segment sedan. Furthermore, it might even deliver a dividend to its shareholders next year.
In addition to Mitsubishi announcing its intent to focus on SUVs, pickup trucks and crossovers, company president Osamu Masuko gave an interview to Automotive News saying that the plan is for model lines to have two or three power train options: gas, plug-in hybrid, diesel. Believing that fuel economy standards will force the expansion of the plug-in hybrid market, Masuko wants to bring a PHEV Pajero to the US (the Montero in our market) because it will restore the brand's place in the full-size SUV segment with a well known nameplate, and help the company reach its goal of making PHEVs 20 percent of its product offering.
We love the idea of a new Montero - and we hope there's a traditional gas model that would come with the PHEV - the question is what would it look like? The Concept GC-PHEV we saw at the 2013 Tokyo Motor Show could offer clues, but with Masuko listing the SUV as the company's second most popular model behind pickups, how daring could designers get with it? On the other hand, if you compare the Concept PX-MiEV shown at Tokyo in 2011, the similarity to the production Outlander is more than one might expect for a crossover that's become a major seller for the brand. With an introduction due in 2015 or 2016, we shouldn't have to wait long to find out. Regrettably, there's still no word on the return of a Mitsubishi pickup truck.