Mitsubishi says it has enough cash to ride out its tests scandal
Japanese car giant Mitsubishi has sought to reassure shareholders today, telling them it has enough cash to ride out the ongoing scandal over its misreported test data – while simultaneously warning there was worse to come.
The company, which last month admitted it had lied about the fuel economy on four of its models – and may have done so for as much as 25 years – today said it believed improper data was used for models among the nine current ones on the market, as well as models it no longer sells.
Overseas models are not affected.
Analysts have put a near-$1bn price tag on total compensation that Mitsubishi could be forced to pay out to customers – but the firm holds $4bn in cash.
"Our finances through the year just ended have been strong, so we think we can manage the issue," chief executive Osamu Masuko told a press conference today. "We haven't approached our sister companies for financial support."
Masuko said he expected the company to explain "everything" by 18 May, the deadline set by Japan's transport ministry for all car-makers to submit reconfirmed fuel economy readings.
Mitsubishi is just the latest in a number of auto firms caught in a mis-reporting scandal, and has blamed competition, as well as insufficient communication with a subcontractor, for its actions.
Last September Volkswagen was at the centre of an even bigger furore after it emerged that the company had manipulated tests to improve its emissions data.
Today the VW board urged shareholders to back management at the AGM, which will be held on 22 June.