Mitsubishi Motors, the Japanese car maker that acknowledged last week that it had intentionally lied about its models’ mileage, says an internal investigation has found such tampering dated back to 1991.
The company president Tetsuro Aikawa said on Tuesday the probe was still ongoing, suggesting that more irregularities might be found.
He said so much was unknown that it is uncertain what action the company will take. He said he did not know why employees resorted to such tactics to make mileage look better.
Tokyo’s Mitsubishi Motors had repeatedly promised to come clean after a huge scandal 15 years ago involving a systematic cover-up of car defects.
The inaccurate mileage tests involved 157,000 of its eK wagon and eK Space light passenger cars, and 468,000 Dayz and Dayz Roox vehicles produced for Nissan Motor.
Shares in Mitsubishi Motors crashed again on Tuesday. The Tokyo-listed shares dived 9.58 per cent to close at ¥434. The stock has now plunged about 50 per cent since the first admission on Wednesday, wiping billions off the company’s value. Up to Friday’s close it had already lost US$3.2 billion off its market capitalisation.
At the weekend, the Japanese news agency Nikkei said Mitsubishi Motors plans to compensate customers in a bid to limit the fallout from the scandal.
It is looking to offer to cover the extra fuel costs incurred by vehicle owners because their engines were less efficient than advertised, the Nikkei reported.
The move aims to “appease angry customers’ nonstop inquiries” and prevent an “exodus” of buyers, the Japanese business daily said, without giving its sources.
business@thenational.ae
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
What is a robo-adviser?
Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.
These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.
Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.
Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
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