Shares in Mitsubishi Motors have fallen by 15 per cent after the company announced mishandling fuel economy tests for some of its cars sold in Japan. The fall in share price is the largest the Japanese carmaker has experienced in over a decade.
The company is alleged to have improperly handled fuel economy tests for its minicars sold in Japan by manipulating the load placed on the tyres in order to improve fuel economy figures. Mitsubishi Motors' share price fell from ¥860 to ¥733 when the markets closed in Japan.
Although the incidents look to affect mainly the Japanese car market, incorrect fuel economy figures are nothing new for the industry. In 2014, South Korean carmakers Hyundai and Kia settled with the US Department of Justice and the Environmetal Protection Agency (EPA) for $350million (£243million) for overstating fuel economy figures for their cars in the US. While the Volkswagen dieselgate scandal continues to run.
Mitsubishi Motors' president, Tetsuro Aikawa is to hold a press conference today to address the issue, and hopefully provide some much needed clarity. A company spokesman said: “One of our models was found the have failed part of a fuel economy test.”
What do you think the Mitsubishi economy test issues will mean for the company? Let us know in the comments section below...