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Investigators say Mitsubishi mpg scandal was 'collective failure'

Investigators hired by Mitsubishi Motors to probe why the Japanese automaker engaged in falsifying fuel-economy figures for the past quarter-century faulted the company's "corporate culture." Specifically, there was a lack of unity between divisions, company-wide pressure to boost fuel-efficiency numbers, and an unwillingness to accept fuel-economy shortfalls, Automotive News says, citing comments made by consultants who hired by the company to investigate the problems. Challenging management authority even if it was proper to do so was also frowned upon. One of the investigators called the scandal "a collective failure." Among other suggestions, the consultants recommended that Mitsubishi's vehicle-mileage certification be independent from research and development, that there's greater transparency overall, and that there's a more thorough understanding of laws. New shareholder Nissan may also invest in retooling Mitsubishi's R&D operations, and is sending one of its former executives, Mitsuhiko Yamashita, to Mitsubishi to try to prevent any sort of repeat problems. Mitsubishi joined a list of automakers including Volkswagen, Hyundai/Kia, and Ford that have been found in recent years to either mislead with its published fuel-efficiency figures or emissions-testing procedures. A Nissan spokesman declined to comment on the Mitsubishi report, according to Automotive News. The recommendation comes less than three months after the announcement that Nissan would help rescue Mitsubishi from its fuel-economy scandal by acquiring part of the company. Nissan agreed in May to pay $2.2 billion for a 34-percent stake in Mitsubishi, and said at the time that Mitsubishi would join the Renault-Nissan Alliance. Nissan also owns 15 percent of France-based Renault. That announcement came right after Mitsubishi's admission that it may have falsified fuel-economy data for every one of its vehicles made in Japan dating back to 1991. Related Video: News Source: Automotive NewsImage Credit: Tomohiro Ohsumi/Getty Images Green Mitsubishi Nissan Fuel Efficiency scandal diesel scandal

DoJ fines Japanese parts firms $740M in massive automotive price-fixing scandal

Nine Japanese suppliers have pleaded guilty in US court over charges of price fixing in the automotive parts industry, resulting in the Department of Justice doling out a total of $740 million of fines, according to a report from Bloomberg. The scandal, which has resulted in General Motors, Ford, Toyota and Chrysler spending up to $5 billion on inflated parts and driving up prices on 25 million vehicles has sent the DoJ hustling into investigations. "The conduct this investigation uncovered involved more than a dozen separate conspiracies aimed at the U.S. economy," Attorney General Eric Holder (pictured above) said during yesterday's press conference.
As the investigation stands, the DoJ has issued $1.6 billion in fines against 20 companies and 21 individual executives, with 17 of the execs headed to prison. Deputy Assistant Attorney General Scott Hammond said, "The breadth of the conspiracies brought to light today are as egregious as they are pervasive. They involve more than a dozen separate conspiracies operating independently but all sharing in common that they targeted US automotive manufacturers."
Big-name suppliers indicted in the investigation include Mitsubishi Electric, Mitsubishi Heavy Industries, Hitachi Automotive and Mitsuba Corporation. A list of fines and other corporations named in the investigation is available at Bloomberg.

1,400 Mitsubishi vehicles lost in shipping tragedy

A cargo ship carrying 1,400 Mitsubishi vehicles from Japan and Thailand collided with another vessel off the coast of Belgium and the Netherlands yesterday. The 485-foot Baltic Ace was carrying cars from Zeebrugge, Belgium to Kotka, Finland when it collided with the 439-foot Corvus J. While the Corvus J sustained damage during the incident, it is not in danger of sinking, and its 12-man crew is currently still on board.
The Baltic Ace, meanwhile, went under. Three ships from the Royal Dutch Sea Rescue Organization, two navy vessels, four helicopters and one coastguard aircraft spent the evening searching for survivors, but rough seas and high winds hampered the effort. Eighteen of the Baltic Ace's crew, including the captain, were rescued after being found in life rafts, but six remain missing. The search for survivors has officially been called off.
The collision occurred in one of the busiest shipping lanes in the North Sea, and the managers behind the Baltic Ace said they believed human error was to blame for the incident. Dutch police are currently looking into whether or not they can investigate the sinking despite the fact that the collision took place outside of the country's territorial waters.