Newspaper article International New York Times

Mitsubishi Forecasts $1.39 Billion Loss for Year ; Japanese Carmaker Fights to Overcome Impact of Mileage-Cheating Scandal

Newspaper article International New York Times

Mitsubishi Forecasts $1.39 Billion Loss for Year ; Japanese Carmaker Fights to Overcome Impact of Mileage-Cheating Scandal

Article excerpt

The automaker is facing the fallout from a scandal over falsified fuel-economy ratings.

Mitsubishi Motors said Wednesday that it expected to incur a loss of 145 billion yen this year as it faces the fallout from a scandal over falsified fuel-economy ratings.

The net loss of $1.39 billion, forecast for the fiscal year to March, would be Mitsubishi's first in eight years. The scandal prompted Mitsubishi to seek a $2.2 billion rescue from its fellow Japanese automaker Nissan Motor last month as it struggled with falling sales and the rising cost of compensating customers.

The episode has already cost Mitsubishi a significant amount of independence. The carmaker gave up about one-third of the company in return for its financial lifeline, becoming part of a global automotive group centered on Nissan and Renault of France.

In April, Mitsubishi admitted using unapproved mileage tests on cars it sells in Japan, which exaggerated the vehicles' stated fuel performance. …

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