Japanese Carmaker Mitsubishi Admits of Misleading Fuel-Economy Testing for Some Models Sold in Japan
On Tuesday, Mitsubishi Motors, the Japanese carmaker said it has used falsified fuel economy information for twenty five years that did not comply with Japanese regulations.
The company said, pressure from internal targets might have stressed the employees to exaggerate the fuel economy of some of its models. The company said it would set up an external committee for investigating the issue.
Mitsubishi Motors is the sixth biggest automaker in Japan and the company has lost almost $3.9 billion or half of its market value from last week, the time when it admitted that it manipulated fuel test data for four mini-vehicle models sold in the home country which also include two, which the company produces for Nissan.
The company said some more models could also have used the wrongful tests that which do not comply with standards set by the Japanese government. This had added to concerns that it might inflate the likely fines and compensation costs for the company.
The auto safety regulators in the United States are asking for more information where as the Japanese counterparts have already raided a research and development facilities of the car maker. However, the Japanese carmaker said, it used suitable testing methods for vehicles that are sold in the US and other overseas markets.
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