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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

Infiniti moves to trademark Eau Rouge

With Formula One taking to Belgium and the famous Spa-Francorchamps circuit this weekend - boasting a reputation as one of the most beautiful courses on the calendar - all eyes will likely be on the tricky Eau Rouge corner, which challenges drivers' high-speed car control over a rolling, tree-lined hill. Infiniti played on the turn's iconic legacy for its ruby red Q50 Eau Rouge concept, and now the brand hopes to trademark the famous racing name so it can keep using it for a potential production version.
In January, the company filed for a trademark on Eau Rouge for "Automobiles and their structural parts; Fuel cell automobiles and their structural parts; Concept cars" with the US Patent and Trademark Office. According to Bloomberg, the application is still under consideration and not yet a guarantee. It's possible that the track could attempt to block the automaker from earning rights to the name. Alternatively, a trademark lawyer tells Bloomberg that the two of them could also strike a deal where Infiniti would pay a small amount for each car sold bearing the title, which could give Spa a bit of extra money in the bank.
Regardless of the name, a vehicle like the Eau Rouge is something enthusiasts have been wanting for years. It combines a modified, 560-horsepower version of the engine from the Nissan GT-R into a four-door sedan covered in aggressive, carbon fiber aerodynamic parts.

Infiniti is pulling out of Western Europe, cutting models

BEIJING — Nissan's premium brand Infiniti has announced it will exit Western Europe early next year, as it restructures its global operations and focuses on the world's top two auto markets. Infiniti said it will discontinue the Q30 sedan and the QX30 sport-utility vehicle and cease their production by the middle of 2019 at Nissan's manufacturing factory in Sunderland, England. Both models are sold globally but produced only in Britain. The QX30 is sold in the United States. The move comes as Infiniti seeks to divert its resources to markets with bigger opportunities, such as China and the United States, from a region where non-European premium brands are struggling to compete against local players such as Audi, BMW and Mercedes-Benz. Nissan also recently scrapped plans to build its new X-Trail SUV in Britain amid the uncertainty surrounding Brexit, saying it had taken the decision to optimize its investments by building the next generation model in Japan. "Western Europe remains the most challenging and competitive region for premium cars," Infiniti's chief spokesman, Trevor Hale, told Reuters. Infiniti's sales in western Europe almost halved last year to 5,800 vehicles. In addition to the tough competition, the Japanese premium brand, headquartered in Hong Kong since 2012, has struggled to effectively meet emissions and other regulatory requirements in the region, Hale said, referring to stringent Euro 6 emissions requirements and other regulatory challenges. "The commercial reality for Infiniti in Western Europe is that there is simply no visibility of a viable and sustainable business, especially given the regulatory challenges," he said. Infiniti said an exit from Western Europe will allow it to focus on its initiative to electrify a good portion of its product portfolio from 2021 and discontinue diesel offerings. The brand plans to focus more on its SUV lineup in North America, bring five new or significantly-redesigned vehicles to China over the next five years, improve quality of sales and residual value and realize more synergies with Nissan. "This is all part of Infiniti's vision to become a top challenger brand in the premium segment," it said. As it prepares to withdraw from Western Europe, Infiniti said it is working to find alternative opportunities for employees who would be affected, consulting with employee representatives where necessary and identifying opportunities for transition and training support where appropriate.