Annual profit of Mitsubishi shrank by 19%

Mitsubishi Motors Corp. perform cost of 19.1 billion JPY (174 million USD) because of losses linked to the scandal tests fuel savings. They narrowed profit for last financial year by 19% and led to changes in senior management. The Japanese carmaker earned 72.6 billion JPY in the fiscal year ended in March 2016, instead of the originally announced in April 89.1 billion JPY. The president Osamu Masuko will assume the role of president, replacing Tetsuro Aikava, who announced last week he would resign. Former Director of Nissan Motor Co., which plans to acquire a 34% stake in Mitsubishi Motors, will oversee development department, which manipulates data on fuel savings and use test methods that are incompatible with the laws in Japan for 25 years.

The costs add clarity to the amount of total expenses scandal about data fuel savings against the desire for Mitsubishi Motors to sell part of its shares of Nissan nearly 2.2 billion USD. The 62-year-old Aikava is about to retire after the company announced that management has created the environment for fraud, in addition to revelations that has tested nine models wrong and overestimated the ratings of four mini cars with a maximum of 15%.

Mitsubishi Motors’ spokesman Shinji Akiyama said that cost into account costs to compensate consumers who bought cars whose costs for fuel economy are undervalued. As costs also include the costs of return of state tax incentives for vehicles that have not had to make concessions. Compensation for Nissan, which Mitsubishi Motors supplies defective mini cars and dealers, whose sales suffered from the scandal are not included in costs explains Akiyama. For his part, former head of the unit for research and development at Nissan Mitsushiko Yamashita will become director of development for Mitsubishi Motors on 24 June.

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