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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Mitsubishi Motors Corporation Announces Full-year Fiscal 2015 Operating Results

Tokyo, April 27, 2016 - Mitsubishi Motors Corporation (MMC) today announced its sales and financial results for the full 2015 fiscal year (FY2015) ending March 31, 2016.

[ Consolidated Summary (PDF: 1pages 13KB) ]
[ Non-Consolidated Summary (PDF: 1pages 15KB) ]
[ Financial Statements (PDF: 30pages 247KB) ]
[ Presentation (PDF: 13pages 252KB) ]
[ Additional Information Material (PDF: 2pages 131KB) ]
[ Notice Regarding Recording of Extraordinary Loss (PDF: 1pages 28KB) ]

1. Full-year fiscal 2015 operating results

1. Performance overview

MMC posted consolidated net sales of 2,267.8 billion yen over the full term of FY2015 (April 1, 2015 through March 31, 2016), a 4% or 87.1 billion yen increase over the same period last fiscal year.

MMC posted an operating income of 138.4 billion yen, a 2% or 2.5 billion yen increase year-on-year. Despite negative factors such as worsening in foreign exchange rate 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.

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.

2. Sales volume (Retail)

Global retail sales volume for the full 2015 year totaled 1,048,000 units, a decrease of 4% or 42,000 units over the same period in FY2014. Sales volumes by regions were as follows. 

Japan: Despite sales volume increased with registered vehicles, decrease in minicars negatively affected totaling 102,000 units, a decrease of 13,000 units or 11% over the same period last year.

North America: Sales volume totaled 135,000 units, an increase of 18,000 units or 16% over the same period last year. The increase was driven by an increase in sales of the Outlander and Outlander Sport.

Europe: Sales volume in Western European area totaled 173,000 units, a year-on-year increase of 11% or 19,000 units, contributed mainly by sales increases in Germany and the United Kingdom. However, this increase could not offset the drop in sales volume in Russia where the economic environment worsened and prices rose due to a worsening currency situation, resulting in total of 206,000 units, a decrease of 9% or 21,000 units over the same period last year for the whole region.

Asia: Sales volume totaled 322,000 units, a year-on-year decrease of 6% or 22,000 units. Although sales increased in Thailand over the same period last year, led by the firm sales of the Pajero Sport which debuted in October, 2015, sales decrease in China and Indonesia negatively affected the total sales of the region.

Other Regions: Sales volume totaled 283,000 units, a decrease of 1% or 4,000 units over the same period last year.

2. Full-year fiscal 2016 forecasts

The full-year FY2016 (April1, 2016 through March 31, 2017) operating results forecasts will be put on hold at this time 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" we announced on April 20, 2016. MMC will disclose information on the consolidated earnings forecast for fiscal 2016 as soon as it is available.

Original source: MMC

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