Mitsubishi’s net profit for financial year ended March increased 58.7% to record 38.0 billion yen ($382.4 million).
Mitsubishi managed to reach the record profit thanks to Japan’s green car subsidies, costs cuts and the yen’s fast depreciation. For the first quarter the automaker reported an operating profit of 26.5 billion yen, up 5.2% compared with the same period last year. For this financial year ending March 2014, Mitsubishi said it expect to reach an operating profit of 100 billion yen.
Mitsubishi, which is the seventh largest automaker by sales in Japan, is involved in several recall issues and the transport ministry warned the company to quickly deal with these problems. Japan’s transport ministry said that Mitsubishi delayed recalls for two years as it was looking for the cause of an oil-leak issue, which led to four recall series between 2010 and 2012, totaling 1.76 million vehicles.
“It became clear that Mitsubishi had problems in each of the steps related to vehicle recalls,” Takahiro Ikari, an official at the transport ministry, told a Mitsubishi Motors executive. “The company should come up with plans for improvement, implement them and report them to the ministry.”