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Investigators say Mitsubishi mpg scandal was 'collective failure'

Investigators hired by Mitsubishi Motors to probe why the Japanese automaker engaged in falsifying fuel-economy figures for the past quarter-century faulted the company's "corporate culture." Specifically, there was a lack of unity between divisions, company-wide pressure to boost fuel-efficiency numbers, and an unwillingness to accept fuel-economy shortfalls, Automotive News says, citing comments made by consultants who hired by the company to investigate the problems. Challenging management authority even if it was proper to do so was also frowned upon. One of the investigators called the scandal "a collective failure." Among other suggestions, the consultants recommended that Mitsubishi's vehicle-mileage certification be independent from research and development, that there's greater transparency overall, and that there's a more thorough understanding of laws. New shareholder Nissan may also invest in retooling Mitsubishi's R&D operations, and is sending one of its former executives, Mitsuhiko Yamashita, to Mitsubishi to try to prevent any sort of repeat problems. Mitsubishi joined a list of automakers including Volkswagen, Hyundai/Kia, and Ford that have been found in recent years to either mislead with its published fuel-efficiency figures or emissions-testing procedures. A Nissan spokesman declined to comment on the Mitsubishi report, according to Automotive News. The recommendation comes less than three months after the announcement that Nissan would help rescue Mitsubishi from its fuel-economy scandal by acquiring part of the company. Nissan agreed in May to pay $2.2 billion for a 34-percent stake in Mitsubishi, and said at the time that Mitsubishi would join the Renault-Nissan Alliance. Nissan also owns 15 percent of France-based Renault. That announcement came right after Mitsubishi's admission that it may have falsified fuel-economy data for every one of its vehicles made in Japan dating back to 1991. Related Video: News Source: Automotive NewsImage Credit: Tomohiro Ohsumi/Getty Images Green Mitsubishi Nissan Fuel Efficiency scandal diesel scandal

Now Mitsubishi Motors has ousted Carlos Ghosn, days after Nissan firing

TOKYO — Mitsubishi Motors said on Monday its board removed Carlos Ghosn from his role as chairman, following his arrest and ouster from alliance partner Nissan last week for alleged financial misconduct. Ghosn's sacking in a unanimous board vote marks the end of his chairmanship of Japanese automakers, just two years after he was praised for bringing a steadying hand to Mitsubishi Motors following a cheating scandal in 2016. CEO Osamu Masuko will become temporary chairman, the automaker said. "Ghosn has lost the confidence of Nissan" and it is "difficult for him to fulfill his duties," spurring the dismissal, Mitsubishi Motors said in a statement. Nissan holds a controlling 34 percent stake in Mitsubishi Motors and has two executives on the board. The move comes amid discontent over French partner Renault SA's role in the 19-year Franco-Japanese alliance of which Ghosn was the driving force. Sealed in 1999 when Nissan was rescued from near-bankruptcy, it was enlarged in 2016 to include Mitsubishi and enabled the members to jointly develop products and control costs. The alliance vies with Volkswagen AG and Toyota for the ranking of the world's biggest automaker. Even as Nissan has recovered and grown rapidly, it remains a junior partner in the shareholding structure. Renault owns 43 percent of Nissan and the Japanese automaker holds a 15 percent non-voting stake in the French firm. And Nissan is almost 60 percent bigger than Renault by sales. Top alliance executives are meeting this week in Amsterdam, aiming to shield their joint operations from the fallout of Ghosn's arrest as a power struggle between Nissan and Renault looms. Renault has refrained from firing him as chairman and CEO. Mitsubishi Motors already had plans to discuss its position in the alliance with Ghosn and, following the ouster, it needs to consider focusing on regions and technology where it can retain competitiveness, CEO Masuko told reporters after the board meeting. Cooperation among alliance members is needed amid the rise of new technology like automated and internet-connected vehicles, he said. Nissan CEO Hiroto Saikawa told staff on Monday that power was too concentrated with Ghosn and that in future better communication between alliance board members and executives would help preserve independence and generate synergies among the automakers, a Nissan spokesman said.

Nissan ex-Chairman Carlos Ghosn wins release from jail

TOKYO — The Tokyo District Court approved the release of former Nissan Chairman Carlos Ghosn on bail of 1 billion yen ($8.9 million) on Tuesday, although the end of his four months of detention in Japan was delayed when prosecutors appealed that decision. Prosecutors filed their objection to Ghosn's release within hours of the announcement he was going to be granted bail. But their appeal was rejected by the court, paving the way for his release. A lawyer for Ghosn said he would not be able to leave the Tokyo Detention Center until Wednesday at the earliest, because bail procedures can't be done at night. The acceptance of Ghosn's request for bail, his third, came a day after the lawyer, Junichiro Hironaka, said he was confident the auto executive would gain his release. Hironaka, who recently joined Ghosn's defense team, is famous for winning acquittals in Japan, a nation where the conviction rate is 99 percent. Hironaka said Monday that he had offered new ways to monitor Ghosn after his release, such as camera surveillance. Hironaka also questioned the grounds for Ghosn's arrest, calling the case "very peculiar," and suggesting it could have been dealt with as an internal company matter. He welcomed the decision, telling reporters: "It was good we proposed concrete ways showing how he would not tamper with evidence or try to flee." The 1 billion yen bail set by the court was relatively high but not the highest ever in Japan. Among the conditions for Ghosn's release were restrictions on where he can live, a ban on foreign travel and other promises not to tamper with evidence or try to flee, the court said. The former head of the Renault-Nissan-Mitsubishi Motors alliance has been detained since he was arrested on Nov. 19. He says he is innocent of charges of falsifying financial information and of breach of trust. In Japan, suspects are routinely detained for months, often until their trials start. That's especially true of those who insist on their innocence. Prosecutors say suspects may tamper with evidence and shouldn't be released. Two previous requests submitted by his legal team were denied. His previous defense lawyer, Motonari Ohtsuru, had said Ghosn's release might not come for months. Hironaka is among many critics of the Japanese justice system who say such lengthy detentions of suspects are unfair.