Mitsubishi Motors announces loss due to fuel economy test mess

Mitsubishi Motors Corporation (MMC) has had to pay for the wrong it had done on the fuel economy tests as it has recorded extraordinary loss in its consolidated and non-consolidated financial results for 2015 fiscal year ended March 31, 2016.

According to a press release, the company recorded an extraordinary loss of 19.1 billion yen (US $ 173.63 billion- approx. Rs 1170.4 crore) as "loss on fuel economy test" in the financial results for the 2015 fiscal year ended March 31, 2016.

The release stated that as announced on April 20, 2016, MMC discovered that in connection with the certification process for the mini-cars manufactured by MMC and regarding the fuel consumption testing data submitted to the Ministry of Land, Infrastructure, Transport, and Tourism, MMC conducted testing improperly to present better fuel consumption rates than the actual rates.

 “As the internal testing process was still ongoing with four mini-cars in question at the time the 2015 fiscal year financial results were announced on April 27, an estimation for the consequent extraordinary loss could not be determined. However, now the results from the internal testing are available; therefore based on those results MMC has estimated a portion of the loss from this issue and recorded an extraordinary loss of 19.1 billion yen as "loss on fuel economy test" in the financial results for the 2015 fiscal year ended March 31, 2016,” the note read.