Suzuki shares dived today on reports that it may have used improper fuel-efficiency testing, the latest bad news for a global auto industry shaken by scandals over deadly defects and emissions cheating. The carmaker said it reviewed all 16 of its models now available for sale, and that the issues don’t apply to products sold overseas.
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Suzuki is the first automaker to step forward with potential wrongdoing after Japan’s transport ministry asked companies to conduct internal investigations in the wake of Mitsubishi Motors’ scandal that began last month. Earlier in the day, the stock had plunged as much as 15 percent.
Reports in Japan suggest Suzuki to was inconsistent with its testing methods and may have breeched Japan’s rules around the methods of measurement.
Suzuki claims that its vehicles sold outside Japan have not been affected.
Last week, Mitsubishi revealed that its cheating on gas mileage ratings extends to more models than previously revealed (See: Mitsubishi admits to manipulating fuel consumption figures).
Suzuki Chairman Osamu Suzuki will report the issue to Japan’s transport ministry Wednesday, company spokesman Hidehiro Hirano told Bloomberg.
This is still the biggest drop in the company’s share price in seven years, reports Bloomberg, but the news of flawed testing methods has affected Suzuki far less than it did Mitsubishi, which lost nearly half its market value last month. Nissan will send in an executive to head Mitsubishi’s vehicle development, the two companies said. This forced disclosure came up after Japan’s transport ministry has ordered to all local automakers to submit new fuel economy data by May 18, a move that followed the unveiling of the fuel economy manipulation undertaken by Mitsubishi.
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Mitsubishi Motors president Tetsuro Aikawa said yesterday he would step down over the scandal, becoming the first senior departure since it broke, battering the company’s reputation and wiping billions off its market value.
