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=== Fuel economy scandal === |
=== Fuel economy scandal === |
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In early 2016, Mitsubishi partner Nissan found discrepancies between Mitsubishi information and actual fuel consumption while working in new micro (kei) cars for both companies, the eK Wagon, eK Space, Nissan Dayz, and Nissan Dayz Roox.<ref name="fuel" /> At the time, Mitsubishi manufactured micro cars for Nissan, which had never produced that class of vehicle itself. Mitsubishi admitted that they had been giving |
In early 2016, Mitsubishi partner Nissan found discrepancies between Mitsubishi information and actual fuel consumption while working in new micro (kei) cars for both companies, the eK Wagon, eK Space, Nissan Dayz, and Nissan Dayz Roox.<ref name="fuel" /> At the time, Mitsubishi manufactured micro cars for Nissan, which had never produced that class of vehicle itself. Mitsubishi admitted that they had been giving wrong information on fuel consumption from 2002 onwards, using inaccurate test methods.<ref>{{cite web|url=http://europe.autonews.com/article/20160427/ANE/160429861/mitsubishis-existence-at-risk-as-fraud-case-widens |title=Mitsubishi's existence at risk as fraud case widens |work=Automotive News Europe |date=27 April 2016 |access-date=27 April 2016 }}</ref> Later, the company said it used fuel-economy testing methods that did not comply with Japanese regulations for 25 years, much longer than previously known.<ref>{{cite web|url=http://in.reuters.com/article/mitsubishimotors-regulations-idINKCN0XN0TM |title=Mitsubishi Motors says cheated on mileage tests for 25 years |publisher=Reuters |date=26 April 2016 |access-date=26 April 2016}}</ref> |
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Mitsubishi management said they did not know about the issue and that the |
Mitsubishi management said they did not know about the issue and that the wrong information came from the micro car development department. They ordered an investigation led by investigators not affiliated with the company.<ref>{{cite web|url=http://the-japan-news.com/news/article/0002906940 |title=MMC execs deny involvement |work=The Japan News |date=27 April 2016 |access-date=27 April 2016 }}</ref> The resultant scandal culminated in Nissan acquiring a controlling interest in MMC in May 2016.<ref>[http://the-japan-news.com/news/article/0002942202 "Nissan to place MMC under its umbrella"] {{Webarchive|url=https://web.archive.org/web/20160516195146/http://the-japan-news.com/news/article/0002942202 |date=16 May 2016 }}, ''The Japan News'', 12 May 2016</ref> As a consequence, Nissan agreed to invest 237.4 billion yen (US$2.2 billion) in exchange for receiving a 34% controlling ownership stake in Mitsubishi Motors.<ref name=GHOSNHUMBLE /> |
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Due to dilution of existing shares, other Mitsubishi group companies (Mitsubishi Heavy Industries, Mitsubishi Corp., and Bank of Tokyo-Mitsubishi UFJ) had their combined holdings in Mitsubishi Motors fall to about 20% from 34% previously.<ref>{{cite news|url=https://www.wsj.com/articles/nissan-to-take-34-stake-in-mitsubishi-motors-1463038142 | title=Nissan to Take $2.2 Billion Stake in Scandal-Hit Mitsubishi Motors | newspaper=Wall Street Journal | date=12 May 2016 | access-date=18 May 2016}}</ref> |
Due to dilution of existing shares, other Mitsubishi group companies (Mitsubishi Heavy Industries, Mitsubishi Corp., and Bank of Tokyo-Mitsubishi UFJ) had their combined holdings in Mitsubishi Motors fall to about 20% from 34% previously.<ref>{{cite news|url=https://www.wsj.com/articles/nissan-to-take-34-stake-in-mitsubishi-motors-1463038142 | title=Nissan to Take $2.2 Billion Stake in Scandal-Hit Mitsubishi Motors | newspaper=Wall Street Journal | date=12 May 2016 | access-date=18 May 2016}}</ref> |
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