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False claims from '91

Posted on 26 April, 2016

Shares in Mitsubishi Motors Corporation are continuing to plunge, after it was revealed that the company improperly tested fuel economy of its cars for 25 years, much longer than previously thought. A panel of three former prosecutors is investigating improper testing dating back to 1991, according to a just-released statement. Mitsubishi had claimed it had not been complying with proper standards since 2002. The external committee is being set up to investigate possible claims that internal targets may have put pressure on staff members to overstate fuel economy. In just one week, Japan’s sixth-largest automaker has lost half its market value, estimated at $3.9 billion. The scandal broke when it admitted manipulating test data for domestic mini-vehicle models – including two for Nissan. Ryugo Nakao, executive vice-president, said the regulations did change in 1991, so testing methods related better to stop-and-go urban driving. However, Mitsubishi did not follow suit. “We should have switched, but it turns out we didn’t,” he said.