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Mitsubishi offers cash to car owners in Japan for rigged mileage claims

Mitsubishi is giving 100,000 yen (£670) to each Japanese owner of its cars as compensation for inflated mileage claims and extra fuel costs.

The Japanese firm said it will take a 50 billion yen (£334 million) charge to cover mileage-rigging expenses, including for the eK minicar models sold in Japan since 2013, and also under the Nissan label, as well as 30,000 yen (£200) compensation each for some other Mitsubishi models.

Minicars are tiny models popular in Japan, and generally promise great mileage.

Tokyo-based Mitsubishi acknowledged in recent months that it had been systematically cheating on mileage tests on a variety of models for decades. It has denied any falsified mileage data for overseas models.

Last month, Nissan took a 34% stake in Mitsubishi, promising to help a turnaround. Under a special agreement, Mitsubishi had supplied the models to Nissan, which does not make its own minicars. Nissan's tests uncovered the mileage cheating.

Mitsubishi Motors president Tetsuro Aikawa said last month he will step down to take responsibility for the mileage scandal, although he denied personal involvement.

Mitsubishi faces a major challenge in regaining consumer trust. In the early 2000s, the firm disclosed a massive cover-up of defects such as failing brakes, faulty clutches and fuel tanks prone to falling off, dating back to the 1970s. It has repeatedly promised to fix its ethical standards.

The Japanese government instructed all car makers to check mileage tests after the Mitsubishi scandal surfaced.

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