Company expects to post an "extraordinary loss" this year.
The fallout from Mitsubishi's fuel-economy cheating scandal continues to grow as the company has announced it will set aside 50 billion yen (approx. $617,700,000 CDN) to compensate owners of affected vehicles.
While the figure is significantly smaller than the amount that Volkswagen has set aside to cover the Dieselgate scandal, it's a pretty hefty sum for a relatively small automaker like Mitsubishi Motors. In particular, the company said it plans to post an "extraordinary loss" this year as a result of fraud in fuel consumption tests. The automaker went on to say that its fiscal results for 2017 also remain in question but it expects to get a better handle on things in the future.
Owners of models affected by the scandal are slated to receive a payment of between 30,000 and 100,000 yen ($370-$1,235 CDN). The company is also on the hook for increased fuel consumption taxes as well as compensation to Nissan and various suppliers.
Mitsubishi has admitted to using “desktop calculations” instead of actual tests to determine fuel economy rating for several different models sold in Japan between 2006 and 2016. The company also used lowered resistance ratings on a handful of models which caused the fuel economy figures for affected vehicles to be significantly higher than what can be achieved in real-world driving.
Source: Automotive News