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Case Code: BECG146
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Case Length: 8 Pages |
Period: 2015-2016 |
Pub Date: 2017 |
Teaching Note: Not Available |
Price:Rs.400 |
Organization : Mitsubishi Motors. |
Industry : AUTOMOBILES
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Countries : Japan |
Themes: Business Ethics |
/corporate governance |
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Mitsubishi Fuel Economy Scandal |
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<<Previous Page |
A SCANDAL UNRAVELS |
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In a shocking admission, Tokyo-based automaker Mitsubishi Motors Corporation (Mitsubishi) said in June 2016 that 20 of its models sold over the previous 10 years were involved in the fuel economy scandal in which the company was embroiled. Earlier on April 20, 2016, Mitsubishi had acknowledged that it had fabricated fuel economy data for 625,000 cars sold in Japan. The company admitted that its engineers had deliberately manipulated the mileage data of the cars. It said that the inaccurate tests involved 468,000 Dayz, Dayz Roox vehicles produced for Nissan Motor Co. (Nissan) and 157,000 of its own-brand eK wagon and eK Space light passenger cars. These four models were made to look 5 to 10 percent more fuel efficient than they would be in real world driving conditions. According to media sources, Mitsubishi joined the list of carmakers such as Hyundai Motor Company (Hyundai) and Kia Motors (Kia) who had manipulated testing or reporting of the fuel economy of their models. Hyundai and its Kia affiliate agreed to pay US$350million (£244m) in 2014 to the US government for overstating the fuel economy ratings of their vehicles..
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