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Employee warned Mitsubishi execs about mileage cheating in 2005

A damning report from the committee brought in to investigate Mitsubishi's alleged fuel economy fixing scandal has revealed a new employee stepped forward and implored the company to play it straight on its mileage data... Eleven years ago. The employee, identified in the report as F, pushed for honesty during a company workshop in February 2005, The Asahi Shimbun reports. The then-new worker told 20 company officials, including senior members of the performance testing department, that the way Mitsubishi measured fuel economy was different from the way government's method. Instead of acting on F's protests, officials said they had no memory of them, the report claims. The four-person committee, made up of lawyers and industry experts, isn't buying the excuse. "It is difficult to accept their explanations that they have no recollections because a new employee pointing out such a problem must have had a (strong) impact," the report read. But F's comments weren't the only internal sign that Mitsubishi allegedly ignored. In a 2011 questionnaire, multiple employees submitted responses claiming that the company had been falsifying data. But according to the committee's report, Mitsubishi's development department issued a report denying there was even a problem, which the company's execs accepted without question. According to The Asahi Shimbun, Mitsubishi CEO Osamu Masuko revealed that an internal investigation – which also denied F's remarks – acknowledged that the company hadn't followed government rules regarding fuel economy measurements since 1991. "We lacked unity needed to detect problems within the company and to solve them," Masuko-san said, backing up the committee report's claim that the company was divided. "From now on, we need to decide how to change our way of thinking." Related Video: News Source: The Asahi Shimbun via Motor TrendImage Credit: Toru Hanai / Reuters Government/Legal Green Mitsubishi Fuel Efficiency scandal

Tokyo court rejects Carlos Ghosn's bail request

TOKYO — A Tokyo court rejected former Nissan chairman Carlos Ghosn's latest request for bail on Tuesday, more than two months after his arrest. A statement from the Tokyo District Court announcing its decision gave no explanation for prolonging a detention of the 64-year-old executive, which has drawn international scrutiny of Japan's justice system. Ghosn had promised to wear an electronic monitoring ankle bracelet, give up his passport and pay for security guards approved by prosecutors in his latest attempt to gain release from a Tokyo detention center. His family said they will appeal. Ghosn has been in custody since Nov. 19. He had a bail hearing Monday. A Tokyo court rejected an earlier request for bail last week. Ghosn, who led Nissan Motor Co. for two decades, has been charged with falsifying financial reports in underreporting his compensation from Nissan over eight years, and with breach of trust, centering on allegations Ghosn had Nissan temporarily shoulder his personal investment losses and pay a Saudi businessman. Ghosn has said he is innocent, explaining that the alleged compensation was never decided, Nissan didn't suffer losses and the payment was for legitimate services. His wife, Carole Ghosn, appealed for his release through Human Rights Watch earlier this month, saying Ghosn's treatment has been harsh and unfair. Her views echo widespread criticism of Japan's criminal justice system both inside and outside Japan. Suspects who insist they are innocent get held longer. Suspects are held in a cell and routinely grilled daily by investigators without a lawyer present, although lawyers are allowed to visit. Ghosn's lawyer Motonari Ohtsuru has acknowledged Ghosn's release may not come until the trial, which may be six months away. A date for the trial has not been set. Nissan officials say an internal investigation has found that Ghosn had schemes to hide his income and that he used company money and assets for personal gain. A special committee Nissan set up after Ghosn's arrest to strengthen governance held its first meeting Sunday. Seiichiro Nishioka, a former judge and co-chair, told reporters after the meeting that Ghosn had shown questionable ethics, and too much power within the company had been focused in one person. The committee's findings are due by late March. Ghosn's pay was long a sticking point in Japan, where executives generally get paid far less than their American and other Western counterparts.

Mitsubishi HQ raided by the Japanese government

Mitsubishi's fuel economy scandal continues to grow, and the Japanese government wants answers. According to Reuters, the Japanese Transport Ministry raided the company's headquarters and a factory in Nagoya today. This raid comes soon after the company revealed that a number of its SUVs were also being sold with incorrect fuel economy ratings. The Japanese government issued a stop-sale on those vehicles a few days ago. This raid also follows an internal investigation conducted by Mitsubishi to discover how this fuel economy scandal happened, and how the practices that led to it were able to continue for 25 years. The internal investigation revealed a few contributing factors that all fell under issues with the company's culture. There was significant pressure throughout the company to reach fuel economy targets and missing them wasn't readily accepted. Questioning decisions of management was also discouraged, and it seemed the different divisions of the company weren't working well together. The findings of this raid have yet to be revealed, but it will be interesting to see how they compare with those of the internal investigation. The Japanese Transport Ministry seems intent on preventing a repeat of this with another company considering that, according to Reuters, it "sent documents to other automakers to enforce compliance with rules for calculating mileage ." Related Video: News Source: Reuters via Automotive News EuropeImage Credit: Julien Amado / Autoblog Quebec Government/Legal Green Mitsubishi Fuel Efficiency investigation