Mitsubishi to compensate customers over the mileage scandal image

Both Japanese carmakers involved in the cheating scheme of mileage readings, Mitsubishi and Nissan, plan to compensate owners, newspaper reports.

According to a report from the local Nikkei newspaper, Mitsubishi will have to further pay for its mileage manipulation, as it plans to compensate its affected customers for costs incurred from fuel efficiency-related issues. As the scandal affects two Nissan models as well, Renault’s alliance partner will also have to compensate its customers, but with Mitsubishi paying Nissan’s portion of the expenses, the paper said. There are around 625,000 mini-cars sold in Japan with “improper” fuel data readings, but it is likely that more oversees models will be affected as well.

As the scandal is still “young”, it is hard to predict how major the impact on the automaker will be, but Mitsubishi’s April sales plunged by 44.9 percent to 1,477 vehicles, according to monthly figures released by the Japan Light Motor Vehicle and Motorcycle Association. Suzuki, a big player on Japan’s mini-vehicle market with one-third of the segment, said it expected the sector to suffer only limited impact over the fuel manipulation.

As far as financial repercussions are concerned, Mitsubishi will definitely take further hits with compensations and fines looming ahead. The scandal has already wiped off more than 3 billion dollars from the company’s market value. For the year ended in March, the automaker posted an operating income of 138.4 billion yen (1.27 billion dollars), a 2 percent or 2.5-billion-yen increase year-on-year.

Via Reuters