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Mitsubishi admits to improper fuel efficiency claims

The affected cars – four mini-car models – were sold to Nissan and are sold under the names eK Wagon, eK Space, Dayz and Dayz Roox.

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These include its eK miniwagon and 468,000 cars it made for Nissan, which markets them as the Dayz. Mitsubishi is also setting up a panel of outsiders to investigate the controversy.

“Taking into account the seriousness of these issues, we will also conduct an investigation into products manufactured for overseas markets”.

According to Reuters, Mitsubishi’s stock fell 15% after the announcement ― its largest drop in 12 years.

Improper methods were allegedly used to make many Japanese domestic market models appear more fuel-efficient, although these may not actually have been deemed street-worthy. “But why they would resort to fraud to do this is still unclear”, said president Tetsuro Aikawa.

The company said that fuel economy tests for the eK Wagon, eK Space, Dayz and Dayz Roox varied from the tests required under Japanese law and that the evaluations themselves were conducted improperly.

Mitsubishi is the latest carmaker to have admitted cheating on performance tests after German giant VW a year ago said it rigged emission tests.

Mini-cars, or kei-cars, are small vehicles with 660cc gasoline engines that are hugely popular in the Japanese market, although have found little success overseas.

Local media reports showed investigators from the Ministry of Land, Infrastructure, Transport and Tourism entering offices of the company’s assembly plant in central Japan’s Nagoya on Thursday.

South Korean auto makers Hyundai Motor Co and affiliate Kia Motors Corp in 2014 agreed to pay $350 million in penalties to the US government for overstating their vehicles’ fuel economy ratings.

Mitsubishi’s shares plunged by 20 percent on Thursday following the carmaker’s admission that it faked fuel economy data on cars sold in Japan.

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Mitsubishi said it would halt production and sales of the affected vehicle models – mini-cars sold in Japan – and warned that the number of affected vehicles would likely rise.

Mitsubishi Motors Apologizes Over Fuel Economy Test Misconduct