How excessive tyre pressure can deflate share price

Thursday 21st April 2016 | 0 Comments

 
Instead of product information, Japanese visitors to the Mitsubishi eK Wagon mini website will now find a statement regarding the validity of information supplied to Japan’s Ministry of Land, Infrastructure, Transport and Tourism
Instead of product information, Japanese visitors to the Mitsubishi eK Wagon mini website will now find a statement regarding the validity of information supplied to Japan’s Ministry of Land, Infrastructure, Transport and Tourism

A simple “trick” – or perhaps we should say “cheating” or “fraud” – has been common practice in the European automotive industry, to the displeasure of environmental organisations: Place a car with excessive tyre pressure on a dynamometer and – voilà – lower fuel consumption levels and emissions are recorded thanks to the ‘optimised’ rolling resistance. Mitsubishi has conceded carrying out this practice in Japan with test data submitted to the Ministry of Land, Infrastructure, Transport and Tourism. This time round it doesn’t affect, as in the case of Volkswagen and its ‘cheat’ software, millions of vehicles, rather ‘only’ 625,000 small cars, the majority of these off-take production for Nissan.

The fallout following Mitsubishi’s admission of misconduct pushed the company’s share price down by more than 15 per cent. Mitsubishi Motors Corporation (MMC) has now stopped producing the cars in question and ceased selling the Mitsubishi eK Wagon and eK Space, and Nissan Motors Corporation (NMC) has also stopped all sales of the Nissan Dayz and Dayz Roox. The two car makers will discuss the matter of compensation, reports MMC.

“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,” the company shared in a statement. “We express deep apologies to all of our customers and stakeholders for this issue.”

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Category: Company News, International News