Mitsubishi says employees cheated on fuel economy/emissions tests

[MetroMPG]

EPA is definitely auditing more ratings than they used to, but it's still the honour system: the manufacturers do all their own testing (based on EPA-defined procedures) & provide the results to the EPA.

That's a big part of the problem.

Of course, the EPA doesn't have the resources to do all the testing themselves.

[Eggman]

Google Finance: MITSUBISHI MOTOR C NPV (OTCMKTS:MMTOF)
May 2 - Close: 4.45 +0.20 (4.71%)
May 6 - Close: 4.50 +0.25 (5.94%)


Bloomberg - Tokyo Stock Quote - 7211: Mitsubishi Motors Corp
As of 2:00 AM EDT 5/2/2016 461.0 JPY +12.0 +2.67%
As of 2:00 AM EDT 5/6/2016 485.0 JPY +24.0 +5.21%

I'm no financial analyst, but this looks like the beginning of a rebound. Mitsubishi has a long way to go to get back to their value before the Big News.

[MetroMPG]

Analysts have estimated that Mitsubishi may have to pay close to $1 billion to compensate Japanese mini-vehicle customers over lost 'eco-car' tax breaks and extra fuel costs.

...

Mitsubishi Motors holds $4 billion in cash, and little debt.

...

Masuko said he expected the company to explain "everything" by May 18, the deadline set by the transport ministry for all Japanese automakers to submit reconfirmed fuel economy readings.

Source: http://www.reuters.com/article/us-mi...-idUSKCN0Y20G0

[MetroMPG]

the latest scandal ... is expected to be more than a fender bender for the company’s balance sheet as the automaker has reported a halving of orders.

I assume that refers to sales in Japan itself.

http://www.japantimes.co.jp/news/201.../#.VzNA_CFI4tB

[MetroMPG]

The company said the extent of such fraudulence was wide, possibly affecting all current and discontinued models sold in Japan.

The company also emphasized again that the cheating was limited to Japanese market vehicles.

http://abcnews.go.com/Business/wireS...odels-39030560

[Eggman]

More from Reuters:

Nissan in talks to own third of Mitsubishi Motors for $1.8 billion: sources

Nissan Motor Co (7201.T) is in advanced talks to take a roughly one-third stake in Mitsubishi Motors Corp (7211.T) with a $1.8 billion investment, as Mitsubishi struggles with a fuel-economy data scandal, two people familiar with the matter said.

If the 200 billion yen deal goes through, Nissan, Japan's second-largest automaker by sales, would become the largest single shareholder of the much smaller Mitsubishi Motors, which admitted last month that it had supplied Nissan with mini-vehicles with overstated mileage levels.

The deal would give Nissan a bigger stake in Mitsubishi than its 15 percent holding in alliance partner Renault (RENA.PA). The French automaker holds a 43.4 percent stake in Nissan.

Sounds like either a vote of confidence, or making a bargain purchase.

I'm curious to know how that would impact the future production of our favorite little car.

[MetroMPG]

Yup, that topic warrants its own thread!

Thread: Rumour: Nissan to take control of Mitsubishi following fuel economy scandal

[cyclopathic]

Yup, that topic warrants its own thread!

Thread: Rumour: Nissan to take control of Mitsubishi following fuel economy scandal

Here you have it: Nissan caught cheating on Emissions in South Korea:
http://www.wsj.com/articles/south-ko...ons-1463383054

South Korea on Monday said it would order Nissan Motor Co. to recall hundreds of its diesel-powered Qashqai sport-utility vehicles imported and sold in the country, saying a government investigation had found the model’s emissions tests were rigged.

[MetroMPG]

GM is playing along, too:

GM halts some U.S. SUV sales after fuel economy overstated



http://www.dailymail.co.uk/wires/reu...verstated.html

[Eggman]

Holy smokes this is nuts.

Might as well confess, everybody. Seems like now is the time. It won't seem so bad... "Look - they did too!!"

Sheesh.

Not My Mirage!

Ha. Take that.