Japan's Mitsubishi Motors to resume sales after latest cheating scandal

September 30, 2016 6:37 AM EDT

A Mitsubishi Motors logo is seen on media day at the Paris auto show, in Paris, France, September 29, 2016. REUTERS/Benoit Tessier


Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.

TOKYO (Reuters) - Japanese automaker Mitsubishi Motors Corp <7211.T> will resume domestic sales of eight vehicle models on Oct. 1, the company said on Friday, after correcting overstated mileage readings in its second cheating scandal this year.

Japan's sixth largest automaker has admitted it falsified the mileage on 12 models, including the Pajero and Outlander SUV, taking a blow to its reputation.

The latest suspension came after a two-month suspension in sales of four minivehicle models this year, including two produced for Nissan Motor Co. <7201.T>, following the initial admission of incorrect fuel economy readings.

The market value of the company has tumbled since that scandal broke, prompting it to seek financial assistance from Nissan, which agreed to buy a controlling one-third stake for $2.2 billion.

Japan is Mitsubishi's fifth-largest market, following markets including Asia ex-Japan, Europe and other regions. Its home country comprised roughly 10 percent of its vehicle sales during 2015/16.

(Reporting by Maki Shiraki and Naomi Tajitsu; Editing by Clarence Fernandez)



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In






Related Categories

Reuters

Add Your Comment