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Mitsubishi Motors halts some SUV sales in Japan as MPG scandal grows

Mitsubishi's fuel-economy scandal is going from bad to worse. First, the Japanese automaker claimed it lied about the fuel economy for a few kei cars, then it claimed fuel economy tests for as far back as 1991 could reveal mile-per-gallon figures that were tampered with. In May the automaker, admitted that every single vehicle it's sold in Japan could be affected by the fuel-economy scandal. Now, the Japanese automaker revealed that more of its vehicles were involved in the fuel-economy cheating scandal – and one of them is sold in the US. After completing its investigation into the automaker's fuel-economy scandal, Japan's Transport Ministry found that Mitsubishi overstated the fuel economy for eight more vehicles in marketing brochures, one of which is sold as the Outlander Sport in the US, reports Automotive News. The Transport Ministry ordered Mitsubishi to stop domestic sales of the models, which include the Pajero, Outlander, and RVR SUV (known as the Outlander Sport in the US). The latest finding adds to four kei cars that were previously noted for having overstated fuel economy figures earlier this year. Japan's sixth-largest automaker is having a hard time recuperating since the scandal broke earlier this April. The initial scandal led to the automaker suspending its sales, which caused a large dip in the automaker's market value. The scandal required Mitsubishi to seek financial assistance from Nissan, which agreed to buy a controlling 34-percent stake for $2.2 billion. Investigators hired by Mitsubishi to look into the automaker's overstated fuel economy figures revealed the company's "corporate culture" as the issue. More specifically, the investigators founds the company's pressure to improve fuel-efficiency figures, a lack of unity between divisions, and an unwillingness to accept fuel economy shortfalls as the reason for falsifying its vehicles' mpg figures. Mitsubishi is expected to compensate Japanese owners for the overstated fuel economy figures, which would result in a massive loss for the automaker. The company is expected to post a net loss of roughly $1.4 billion this year, pushing Mitsubishi into the red for the first time in approximately eight years. Related Video: News Source: Automotive News-sub.req.Image Credit: Tomohiro Ohsumi / Bloomberg via Getty Images Government/Legal Green Mitsubishi Nissan Fuel Efficiency kei car scandal

Long-serving Mitsubishi president Masuko to step aside

Long-struggling Mitsubishi Motors is reportedly preparing for a changing of the guard at home. According to Reuters, Osamu Masuko will step aside in favor of Tesuro Aikawa, currently the company's managing director. Masuko won't be leaving the fold entirely, however - he will take the role of chairman, displacing Takashi Nishioka, who will resign. The shakeup has not been confirmed by Mitsubishi, but word is that the changes will take effect April 1.
Mitsu's US troubles are no secret, but the brand's struggles in its home market haven't been quite so publicized. The company was bailed out by other arms of the Mitsubishi empire, and it just raised $2 billion this month to buy back preferred shares that were issued during the bailout. Masuko served as president for nearly ten years, during which the brand's US efforts utterly stalled out, recalls cropped up in Japan and an alliance with Daimler (which was DaimlerChrysler at the time) disintegrated.
According to Reuters, establishing the kind of alliances that will allow the brand to grow, such as its tie-up with Renault-Nissan, are key to Mitsu's long-term success. The thought is that an alliance will allow the brand to come up with some innovative models that won't be compromised by its lack of production scale. It looks like Aikawa has his work cut out for him.

EPA, CARB want Mitsubishi to retest US fuel economy figures

The Environmental Protection Agency and California Air Resources Board are the latest government bodies to request details from Mitsubishi in connection with the company's fuel economy cheating, Automotive News reports. The company will also have to reevaluate the mileage for some models here. "The agency will be directing the company to conduct additional coast down testing for vehicles sold in the US," an EPA spokesperson told Reuters. The EPA, 'will be directing the company to conduct additional coast down testing for vehicles sold in the US.' The EPA's coast down test requires vehicles to roll from 80 miles per hour to a stop. Automakers' engineers collect data on the model's drag, rolling resistance, and drivetrain friction. The information then goes into a dynamometer for the mandated fuel economy test. The EPA set stricter guidelines for the test in 2015 starting with 2017 model year vehicles, which might help avoid similar scandals here in the future. Japan has also used a coast down test since 1991, but Mitsubishi recently admitted that it hadn't been following the evaluation's mandated protocols there. Instead, the automaker came up with its own "high-speed coasting test." By selecting favorable values from the results, the company was able to artificially inflate the fuel economy of at least four Japanese minicars. In addition to inquiries from CARB and the EPA, the National Highway Traffic Safety Administration has also requested similar details from Mitsubishi. However, there is no evidence yet of any fuel economy irregularities for vehicles in the US. These agencies are just checking things out in reaction to the massive scandal in Japan. Mitsubishi execs are trying to weather the storm, though. Chief Operating Officer Tetsuro Aikawa and CEO Osamu Masuko have denied rumors about resigning over the scandal, according to Automotive News Europe citing a Reuters report. "It's my responsibility and my mission to put the company on track to recovery," Aikawa said. Their decision came despite the automaker's stock losing half of its value since the fiasco started, and vehicle orders in Japan have dropped significantly, too. Related Video: News Source: Automotive News - sub. req., Reuters, Automotive News Europe - sub. req.Image Credit: Toru Hanai TPX / Reuters Government/Legal Green Mitsubishi Fuel Efficiency mpg vw diesel scandal