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April 29, 2016updated 09 Apr 2021 9:48am

Mitsubishi orders plunge in crisis

Mitsubishi Motors Corporation has revealed that orders for its vehicles in Japan have plunged following its admission that it has committed fuel-economy testing fraud in Japan.

Mitsubishi Motors Corporation has revealed that orders for its vehicles in Japan have plunged following its admission that it has committed fuel-economy testing fraud in Japan.

MMC President Tetsuro Aikawa told an earnings briefing  in Tokyo that daily orders in Japan halved after the announcement on April 20. The company also declined to offer a forecast for earnings for the current fiscal year. It said operating results forecasts will be put on hold as MMC is now in the process of carefully assessing the future impact from “the improper conduct in fuel consumption testing on products manufactured by MMC”. The company said it will disclose information on the consolidated earnings forecast for fiscal 2016 as soon as it is available.

It released figures for the fiscal year 2015 (year ended March 31 2016) that included a 25% drop to net income and a 4% gain to consolidated net sales of 2,267.8 billion yen.

MMC posted an operating income of 138.4 billion yen, a 2% or 2.5 billion yen increase year-on-year.

The company said that despite negative factors such as currency effects and “increase in costs on quality measures in the market”, positive factors such as cost reductions and improvements in volume/model mix, among others contributed to the increase.

However, MMC posted an ordinary income of 141.0 billion yen, a 7% or 10.6 billion yen decrease year-on-year. Net income attributable to owners of the parent came to 89.1 billion yen, a 25% or 29.1 billion yen decrease year-on-year.

Global retail sales volume for the full 2015 year totalled 1,048,000 units, a decrease of 4% or 42,000 units over the same period in FY2014. 

Mitsubishi improperly tested fuel economy for 25 years  

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