Mitsubishi Motors Corporation (MMC) first fiscal 2016/2017 operating profit plunged 75% year on year to JPY4.6bn after the halt in production and sales following revelations of improper conduct in fuel economy testing in Japan. Sales fell 14% to JPY428.7bn.
The automaker’s net result also plunged JPY153.7bn to a loss of JPY129.7bn.
Global retail sales volume fell 16% to 221,000 units.
In Japan overall unit sales fell 43% to just 10,000 units.Year-on-year minicar volume dropped “drastically due to impact from the halt in production and sales, resulting in an overall decrease for the region”, MMC said in a statement.
North America sales dipped 5% to 37,000 units, bolstered by the Outlander.
In Europe, a sales plunge in Russia, due to its continuingly stagnant economy, was offset by increased Outlander volume in western Europe, limiting the fall to 15% and 47,000 units.
In Asia, although sales of the Pajero Sport in Indonesia rose, along with sales of the Mirage and Attrage in both Thailand and the Philippines, sales in China fell as the number of MMC vehicles qualifying for the government subsidy for small cars (from October 2015) were limited.
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Overall, regional sales fell 8% to 71,000 units in the entire Asia region.
Elsewhere, sales fell 26% to 56,000 units, due partly to “sluggish” sales in the Middle East and Africa as a result of economic downturns in those areas.
Fiscal 2016 forecasts
MMC said it would not change [revised] forecasts announced on 22 June, 2016 for the full fiscal year ending 31 March, 2017.
