Corporate scandal is part of doing business as Mitsubishi scandal widens

Always the duplicitous British, Britain’s David Cameron calls for the first global anti-corruption summit held on May 12th, 2016. The initiative to convene the summit belongs to British Prime Minister David Cameron. It is expected that the British Prime Minister will make an initiative to create a “global anti-corruption agency”. As if the world doesn’t have enough “law enforcement” organizations already? The forum and its results will be used by the West to further put pressure on other countries. Always the British claiming to be at the top of moral standards on what corruption is when HSBC Bank outside of perhaps Goldman Sachs, are the two most corrupt banks in the world.

Most have heard through one source or another, Mitsubishi Motor Co. (MMC) being exposed in a scandal in which data was presented that showed Mitsubishi Motor Co. cars were less fuel efficient than what they were advertised and manufactured as being. It’s probably a good idea to hold back opinion until the investigation is finished before any judgement on MMC is leveled. Without scandals corporations can’t possibly compete globally. Corporate scandal is the price of doing business and there isn’t day that doesn’t go by that a corporation doesn’t get exposed in a scandal. As a result of this scandal involving Mitsubishi Motor Co., Nissan has stepped in to form a “strategic alliance” with Mitsubishi Motors Co. right in the nick of time.

Source: Reuters

Mitsubishi Motors mileage scandal widens, U.S. regulator seeks information

April 26, 2016

The logo of Mitsubishi Motors Corp is seen at its headquarters in Tokyo, Japan, April 21, 2016. Reuters/Toru Hanai

Mitsubishi Motors Corp’s (7211.T) fuel economy scandal broadened on Friday as U.S. auto safety authorities said they were seeking information, and media reported that the automaker had submitted misleading data on at least one more model than disclosed and likely several others.

Japan’s sixth-largest automaker admitted this week it had overstated the fuel efficiency of 625,000 cars, wiping off around 40 percent of its market value, or $3.2 billion in three days.

The revelations have also prompted Japanese authorities to raid one of its research and development facilities while Standard & Poor’s warned its rating could be lowered further into speculative grade territory.

Adding to fears that the scandal will lead to ballooning compensation costs and fines, top Japanese government officials said Mitsubishi may have to reimburse consumers and the government if investigations find the vehicles were not as fuel-efficient as claimed.

“This is a serious problem that could lead to the loss of trust in our country’s auto industry,” Transport Minister Keiichi Ishii told a news conference on Friday.

He said he wanted Mitsubishi to look at the possibility of buying back the cars in question, while another minister was quoted by media as saying the government could ask it to pay for any electric car subsidies granted to consumers.

Domestic media reported that Mitsubishi had submitted misleading mileage data on its i-MiEV electric car, which is also sold overseas. Previously disclosed models are marketed specifically for the Japanese market and Mitsubishi has admitted to manipulating their fuel economy readings.