Just as Volkswagen is agreeing on ways to settle its emissions scandal, Japanese car manufacturer Mitsubishi has admitted to reporting false data for car emissions for the past 25 years. The company said about 625,000 of its mini-cars sold in Japan had been tested incorrectly; regulations changed in 1991 to include driving in urban areas, but Mitsubishi didn't adjust its data.
Mitsubishi Motors President Tetsuro Aikawa said, "We don't know the whole picture, and we are in the process of trying to determine that. I feel a great responsibility." Like Mary Barra, GM's CEO, Aikawa is a new president as the scandal is unfolding. Barra was GM's CEO for only a few months before the ignition issues came to light.
As of now, Mitsubishi's website "Press Room" doesn't include a statement about the news, but Aikawa has given a press conference in Japan. During the conference, Aikawa said, "We've discovered that improper tests were being used designed to show fuel consumption better than it actually was. It was also found that the fuel economy testing methods were not in line with Japanese regulations. We offer our profound apologies to customers and shareholders."
Cue deep bow...
Since the news broke, Mitsuibishi's stock has dropped about 50%.
- So far, what are the similarities and differences between this situation and Volkswagen?
- What should Mitsuibishi publish on its website at this point?
- Should we expect more car models to be affected, as we saw with Volkswagen?