Mitsubishi Motors admits manipulating fuel economy tests

Mitsubishi Motors has admitted manipulating test data to overstate the fuel efficiency of 625,000 cars.

The Japanese carmaker said the inaccurate tests covered four of its mini-cars, two of which it manufactured for Nissan. The number of Nissan cars affected was 468,000, while 157,000 were sold under the Mitsubishi brand.

When Nissan tested the cars supplied by Mitsubishi Motors, it found differences between its figures and Mitsubishi’s results. Nissan asked Mitsubishi Motors to investigate and this led the company to discover “improper conduct” and tests that did not meet Japanese law.

The company released the information in a statement as its president, Tetsuro Aikawa, held a news conference. He and other company officials bowed deeply at the start of the briefing.

Mitsubishi Motors said: “We found that with respect to the fuel consumption testing data … MMC conducted testing improperly to present better fuel consumption rates than the actual rates and that the testing method was also different from the one required by Japanese law. We express deep apologies to all of our customers and stakeholders for this issue.”

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Japan’s sixth-biggest carmaker by market value said it and Nissan had stopped production of the cars and that it would discuss compensation with Nissan.

Shares in Mitsubishi Motors, which is controlled by Japan’s Mitsubishi conglomerate, dropped 15% in Tokyo – their biggest fall in almost 12 years.

The incorrect testing method was used for other cars manufactured for the Japanese market and Mitsubishi Motors will now look at products made for overseas markets. The company will set up an investigation committee of outside experts, it said.

Mitsubishi Motors joins Hyundai, Kia and Ford on the list of carmakers that have mishandled testing or reporting of their models’ fuel economy.

Hyundai and its Kia affiliate agreed to pay $350m (£244m) in 2014 to the US government for overstating vehicles’ fuel economy ratings.

Carmakers are under intense scrutiny about the claims they make for their vehicles after Volkswagen admitted last year that it rigged emissions tests.

VW has set aside €6.7bn (£4.8bn) to pay for the crisis and its shares are down about 30% since the scandal was revealed in September.