Japan’s Mitsubishi Motors to resume sales after latest cheating scandal
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Japanese automaker Mitsubishi Motors Corp (7211.T) will resume domestic sales of eight vehicle models on Oct. 1, the company said on Friday, after correcting overstated mileage readings in its second cheating scandal this year.
Japan’s sixth largest automaker has admitted it falsified the mileage on 12 models, including the Pajero and Outlander SUV, taking a blow to its reputation.
The latest suspension came after a two-month suspension in sales of four minivehicle models this year, including two produced for Nissan Motor Co. (7201.T), following the initial admission of incorrect fuel economy readings.
The market value of the company has tumbled since that scandal broke, prompting it to seek financial assistance from Nissan, which agreed to buy a controlling one-third stake for $2.2 billion.
Japan is Mitsubishi’s fifth-largest market, following markets including Asia ex-Japan, Europe and other regions. Its home country comprised roughly 10 percent of its vehicle sales during 2015/16.
Questions & Answers
Q.Which models will Mitsubishi Motors resume selling from October 1st?
Which models will Mitsubishi Motors resume selling from October 1st?
The company will resume domestic sales of eight vehicle models. This follows corrections to overstated mileage readings in what is its second cheating scandal this year.
Q.How did the initial scandal impact Mitsubishi Motors' market value and relationship with Nissan?
How did the initial scandal impact Mitsubishi Motors' market value and relationship with Nissan?
Mitsubishi Motors' market value tumbled significantly after the scandal broke. This led them to seek financial assistance from Nissan, which subsequently agreed to acquire a controlling one-third stake for $2.2 billion.
Q.How important is Japan as a market for Mitsubishi Motors?
How important is Japan as a market for Mitsubishi Motors?
Japan is Mitsubishi's fifth-largest market globally, following regions like Asia ex-Japan and Europe. Its home country accounted for approximately 10 percent of the company's total vehicle sales during the 2015/16 financial year.
Q.How many models were involved in Mitsubishi Motors' mileage falsification?
How many models were involved in Mitsubishi Motors' mileage falsification?
Mitsubishi Motors admitted to falsifying mileage data on 12 models in total, including popular SUVs like the Pajero and Outlander. This admission has significantly damaged the company's reputation.