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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

Carlos Ghosn freed from jail after four months

TOKYO — Wearing a mask, cap and what looked like a construction worker's outfit, the former chairman of Nissan Motor Co., Carlos Ghosn, left a Tokyo detention center Wednesday after posting 1 billion yen ($8.9 million) bail. Although his face was obscured as he left the facility, Ghosn's identity was apparent as he smiled after arriving at a building in downtown Tokyo, having removed his jacket, mask and hat. There was a scramble by media to follow Ghosn after he boarded a small Suzuki van, topped with a ladder, and traveled from the Tokyo Detention Center toward downtown. Motorcycles trailed the van in formation as it passed through city streets to one of the defense lawyer's offices. Ghosn later left in another car, which was mobbed by media. Ghosn, the former head of the Renault-Nissan-Mitsubishi Motors alliance was arrested on Nov. 19. He is charged with falsifying financial reports and with breach of trust. The Tokyo District Court confirmed the 1 billion yen ($8.9 million) bail was posted earlier in the day, after a judge rejected an appeal from prosecutors requesting his continued detention. That cleared the way for Ghosn to leave the facility after spending nearly four months since his arrest. Before his release, Ghosn, who turns 65 on Saturday, issued a statement reasserting his innocence. "I am innocent and totally committed to vigorously defending myself in a fair trial against these meritless and unsubstantiated accusations," he said. A date for his trial has not yet been set. Suspects in Japan often are detained for months, especially those who insist on their innocence, like Ghosn. Some legal experts, including Junichiro Hironaka, one of his lawyers, have criticized the system as "hostage justice," saying the long detentions tend to encourage false confessions. Ghosn's lawyer in France, Jean-Yves Le Borgne, said the lawyers in Japan will be leading the defense but he was in touch with them. "He is catching his breath and settling in," Le Borgne said of Ghosn. French Finance Minister Bruno Le Maire said a presumption of innocence for Ghosn was crucial, while noting the importance to France of the alliance between Nissan and French automaker Renault SA. "It is a good thing that Carlos Ghosn can defend himself freely and serenely, and his release will permit Carlos Ghosn to defend himself freely and serenely," he said. The French government owns about 15 percent of Renault SA, making it an influential voice in the future of the alliance.

EPA, CARB want Mitsubishi to retest US fuel economy figures

The Environmental Protection Agency and California Air Resources Board are the latest government bodies to request details from Mitsubishi in connection with the company's fuel economy cheating, Automotive News reports. The company will also have to reevaluate the mileage for some models here. "The agency will be directing the company to conduct additional coast down testing for vehicles sold in the US," an EPA spokesperson told Reuters. The EPA, 'will be directing the company to conduct additional coast down testing for vehicles sold in the US.' The EPA's coast down test requires vehicles to roll from 80 miles per hour to a stop. Automakers' engineers collect data on the model's drag, rolling resistance, and drivetrain friction. The information then goes into a dynamometer for the mandated fuel economy test. The EPA set stricter guidelines for the test in 2015 starting with 2017 model year vehicles, which might help avoid similar scandals here in the future. Japan has also used a coast down test since 1991, but Mitsubishi recently admitted that it hadn't been following the evaluation's mandated protocols there. Instead, the automaker came up with its own "high-speed coasting test." By selecting favorable values from the results, the company was able to artificially inflate the fuel economy of at least four Japanese minicars. In addition to inquiries from CARB and the EPA, the National Highway Traffic Safety Administration has also requested similar details from Mitsubishi. However, there is no evidence yet of any fuel economy irregularities for vehicles in the US. These agencies are just checking things out in reaction to the massive scandal in Japan. Mitsubishi execs are trying to weather the storm, though. Chief Operating Officer Tetsuro Aikawa and CEO Osamu Masuko have denied rumors about resigning over the scandal, according to Automotive News Europe citing a Reuters report. "It's my responsibility and my mission to put the company on track to recovery," Aikawa said. Their decision came despite the automaker's stock losing half of its value since the fiasco started, and vehicle orders in Japan have dropped significantly, too. Related Video: News Source: Automotive News - sub. req., Reuters, Automotive News Europe - sub. req.Image Credit: Toru Hanai TPX / Reuters Government/Legal Green Mitsubishi Fuel Efficiency mpg vw diesel scandal