Fuel Economy Scandal Offshoot - Mitsubishi President & Executive Vice President Resigns

Fuel Economy Scandal Offshoot - Mitsubishi President & Executive Vice President Resigns

MANILA: First things first, this morning a birdy came flying in our office all the way from Japan and brought along with it a shocking yet expected piece of information. Well, we all are aware of the brand name Mitsubishi, the same brand that's the source of popular cars like Mirage, Montero Sport, and Lancer. Now, according to the birdy, Mitsubishi Motor Corporation, the Japanese wing of the brand is witnessing some deep troubles these days, and dark clouds that started hovering MMC since April last week just won't agree to leave. As per the latest piece of info, Mitsubishi Motors President, Tetsuro Aikawa resigned and Executive Vice President, Ryugo Nakao have resigned from their respective post.

No, no, it's no employee cut-off regime nor it is the aftermath of the recent Nissan-Mitsubishi tie-up that made the former major stakeholder in the latter. The culprits responsible for this leave-taking ceremony are these highly trusted Mitsubishi employees themselves. It's like they are getting punished for their past sins. Now, many of you must be wondering, what sin have forced these high-profile white-collar Mitsubishi longtime loyal to quit?

Down under we have thrown light on some past events that'll give a better understanding of the situation -

MMC manufactured cars for Nissan

1. A few days before the D-day - Nissan Motor Co., found out a major mileage defect in Mitsubishi manufactured Dayz and Dayz Roox (both cars are manufactured by MMC for NMC).

2. 22nd April 2016 - Mitsubishi Motor Corporation held a media conference wherein the Japanese giant admitted that from the past many years (25, to be specific) it provided fake fuel economy figures that in reality were never achieved by its cars.

2. Apologies Day - Now ex-president Tetsuro Aikawa apologies on behalf of the entire MMC group and took full responsibility for the scandal.

3. 12th May 2016 - Seeing Mitsubishi deteriorating condition Nissan moved a friendly hand forward and announced that it will soon acquire 34% stake in MMC that is valued to be around $2.2 billion.

nissan-mitsubishi-alliance

4. 18th May 2016 - MMC President, Tetsuro Aikawa step down from his position. He was first one to do so as he came from the same product department where the entire scandal took birth. Wondering who'll sit on his chair, well, for now, MMC's CEO, Osamu Masuko will fill his position until any new entry is made in the company.

5. 19th May 2016 - As for the latest happening under MMC's roof, it seems one more high-end executive has submitted his resignation. This time it's MMC Executive Vice President, Ryugo Nakao who has filed for resignation.

MMC Executive Vice President, Ryugo Nakao

6. A future update, 26th June 2016 - This is the decided date when both the above mentioned red-faced MMC executives will witness their last day in the company and it’s also the day of MMC's shareholder's meeting.

Mitsubishi Motor Corporation in a media-issued statement penned down the latest happenings as - 'MMC has caused tremendous trouble and concern to our customers and all of our stakeholders. Considering this, Mr Aikawa and Mr Nakao decided today that they will resign as Representative Directors as of June 24, 2016."

But one thing remains still unanswered, How exactly Mitsubishi faked fuel-economy figures for such a long time? Well, this question was also answered by Mitsubishi itself, wherein they told media persons that since 1991 it is conducting a 'high-speed coasting test' to measure its vehicles’ fuel economy. But this test is different from the government authorised 'coasting test' that lead to pouring out of high and misleading mileage figures. When asked, why they never bothered to change to the government prescribed test, MMC said that it is not sure why previous officials decided to stick on this test despite given numerous chances to replace it with 'coasting test'.

That’s all for now on MMC’s fall-down, stay tuned with CarBay to get the latest information on the scandal.

Also Read: Nissan Gets Caught in a Prison of their Own Devise

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