1998 Mitsubishi Mirage De Sedan 4-door 1.5l on 2040-cars

Auto blog

Ghosn: Restoring Mitsubishi's reputation is biggest challenge

After news that Mitsubishi falsified its fuel economy data on every vehicle it has sold in Japan since 1991, and the tumble in the company's value that followed, the troubled carmaker has an unlikely savior. Nissan has confirmed it will purchase over one third of Mitsubishi's stock, or 34 percent. The stake is valued at $2.2 billion. Ghosn says making Mitsubishi a part of the Renault-Nissan alliance will save billions in development costs. But the merger certainly isn't without challenges. "The biggest challenge is to support Mitsubishi changing itself and growing and being profitable and restoring its reputation," said Ghosn. Nissan is a natural partner for Mitsubishi, and since the fuel economy scandal escalated from discrepancies in the data regarding Mitsubishi-manufactured, Nissan-badged Japan-market vehicles, it makes sense for the company to sweep in and save the day. Nissan itself is partially owned by Renault, and Nissan has a 15-percent stake in the French automaker. Mitsubishi's chairman, Osamu Masuko says that the merger was inevitable, that it "would have happened one day" anyway, according to the New York Times. Carlos Ghosn, chairman of both Nissan and Renault, is confident they will be able to turn Mitsubishi's fortunes around. "We have the track record to make it work", Ghosn said, referring to the Renault-funded rescue of Nissan in the early 2000s. Related Video:

Mitsubishi scores record global operating profits

In the minds of many auto enthusiasts, Mitsubishi has become an afterthought. It has transformed from a company known for its turbocharged, all-wheel-drive rally machines into an automaker with a very boring lineup. Maybe we are being unfair, though. While the company doesn't have much of a performance presence anymore, the Japanese brand is doing quite well financially.
According to Reuters, Mitsubishi Motors had an operating profit of 123.4 billion yen ($1.2 billion) worldwide for the fiscal year that ended in March. That's twice as much as last year and a new all-time record for the Japanese automaker. It's even paying dividends to investors for the first time in 16 years, and its expected profit of 135 billion yen ($1.3 billion) in the new fiscal year matches a goal it had set for itself to achieve two years from now.
The automaker currently focuses much of its efforts on Southeast Asia, which accounts for about a quarter of its sales. It will put even greater attention there in the coming years with more local production, according to Reuters.

Mitsubishi hopes you'll trade driving data for a cheaper oil change

Companies and cities love it when you supply driving data, but how do they convince you to hand it over? In Mitsubishi's case, it's simple: shower people with gifts. The automaker has launched a mobile app that asks American commuters to share data on their driving habits with insurance companies in return for badges they can exchange for rewards. Mind your road manners (such as staying within the speed limit or avoiding sudden braking) and you can get discounts on oil changes and car accessories. You should also receive free coffee and gift cards by the end of 2018. Insurers and local governments have tried similar strategies, but this is the first of its kind directly from a car company. Mitsubishi's Bryan Arnett described this to the Wall Street Journal as a way to "stabilize the business" with alternate sources of income if car sales slip. The catch, as you may have guessed, is that insurers will have your data. The Mitsubishi project will help insurers understand driving patterns and adjust their risk profiles, potentially lowering your rates if you drive safely. However, you're potentially subjecting yourself to scrutiny for every little decision you make on the road, often without context. If you push past the speed limit to get out of a big rig's blind spot, will Mitsubishi know the difference between that and genuinely reckless driving? Probably not. Simultaneously, there's a concern that insurance companies may try to make this kind of data collection mandatory if you want to avoid stiff premiums, rather than a bonus. If they did, you wouldn't have much choice but to sacrifice privacy if you wanted to drive. The move draws attention to the practices of the car makers themselves, for that matter. Many of them are aware that car ownership might not last forever, and they may increasingly turn to data harvesting strategies like this to offset any potential sales drops.This story originally appeared on Engadget, your guide to this connected life.Related Video: