Mitsubishi sales fall over fuel revelations

THE head of crisis-hit Mitsubishi Motors said yesterday that sales in Japan had fallen off a cliff since the company’s admission last week that it had been cheating on fuel-efficiency tests.

Company president Tetsuro Aikawa revealed that orders had dropped by almost half since the scandal erupted, as the crisis took a toll on the company’s reputation.

“It is difficult to know exactly what kind of effect this problem will have on sales,” he said as Mitsubishi released its latest financial results, unaffected by the recent revelations.

“Domestic orders have [fallen] by nearly half since before our announcement and now.

“As far as overseas markets are concerned, we don’t have new information on how this has affected our sales.”

But “the situation is very serious and we are treating it that way”, he said.

The car maker said it might approach its financial backers, which include other Mitsubishi Group companies, for assistance if necessary, but its financial position was strong and it saw no need for fresh funding.

The maker of the Outlander sport utility vehicle said it could not make financial forecasts for 2016-17 in the light of the potential damage from the scandal, as it faced the possibility of big fines, lawsuits and compensation costs.

Last week, Mitsubishi admitted to using improper testing, and said that unnamed employees had manipulated data to make some of its cars seem more fuel-efficient than they actually were.

Aikawa has said he had not become aware of the problem until recently.

Yesterday, he dismissed as speculation reports that he and other top executives would resign immediately.

“I will do everything I can to solve this problem if we are allowed to continue,” he said.

An outside panel of experts has been hired to conduct a lengthy investigation, while regulators are also probing the company.

The crisis has raised questions about Mitsubishi’s future – its Tokyo-listed shares have plummeted by about half since the story broke, with billions of dollars wiped off the company’s market value.