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Mitsubishi fuel economy scandal will result in $1.39 billion loss

The fuel economy scandal revealed a couple months ago will cost Mitsubishi Motors a pretty penny. According to The New York Times, the Japanese automaker predicted the fiscal year 2016 will result in a loss of 145 billion yen, or $1.39 billion. We won't know for sure until March rolls around. The prediction is even more striking when compared to Mitsubishi's performance during the last few years. It will be Mitsubishi's first reported loss in eight years. In 2014, Mitsubishi reported a global profit of $1.2 billion, which doubled the profits of the previous year, and in the spring of 2015 the US arm of the manufacturer reported its first profits in seven years – $4.18 million. For a little while there, it seemed like things were looking really good for Mitsubishi, but past flaws caught up with it. Some of the models built have had their fuel economy readings rounded by as much as 15 percent, due to the way running resistance is calculated in laboratory conditions. Nissan swept in to buy one third of Mitsubishi, and under the Renault-Nissan alliance it is likely Mitsubishi will be put on a crash course to clear its name and start turning a profit again. But the bad publicity caused by the scandal will probably mean it'll be far in the future. Related Video:

Mitsubishi Engelberg Tourer concept is a 4WD plug-in hybrid

Mitsubishi has finally taken the wraps off its strangely named Engelberg Tourer crossover concept in Geneva, revealing a twin-motor, four-wheel-drive plug-in hybrid with some nifty off-road capabilities and connected-car technology. Named for a Swiss ski resort famous for its unmarked, backcountry terrain, the Engelberg Tourer is a sporty-looking crossover that could preview a new Outlander. It features plenty of side creasing, an upright front end, interesting running lights and that unique roof box cap with integrated fog lamps and highly reflective strips of chrome along the sides. Mitsubishi says the crossover has an all-electric range of more than 70 kilometers, or around 43 miles, at least on the European WLTP cycle, and a combined gasoline-electric range of more than 700 km (435 miles). The Engelberg — users will inevitably make comparisons to the singer Engelbert Humperdinck, as does Google's autofill function — benefits from established and advanced Mitsubishi technologies. It uses the twin-motor PHEV system developed for the Outlander PHEV and improves it, with high-efficiency motors at the front and rear axles and a 2.4-liter gasoline engine in a series hybrid setup, acting as a generator. It uses active yaw control first developed for the Lancer Evolution series to split torque between the front and rear wheels, or between the front wheels alone, and matches it with a super all-wheel control system to improve performance and stability. The concept also features improved anti-lock braking at each wheel and active stability control to reduce wheel slip on snow-covered roads. The onboard navigation system takes the destination entered by the driver and factors in weather, temperature, topography, traffic and road conditions to choose the ideal drive mode and tailor torque split through drive battery management and the super all-wheel control system. Inside, Mitsubishi fashioned a spacious interior bedecked in white panels and seating material and black contrasts. There's also a roof box that houses fog lamps and front and rear bumper under guards. Mitsubishi also is demonstrating the Dendo Drive House, its version of a vehicle-to-home system that allows electric or plug-in hybrid vehicles to generate, store and share energy with a home. Mitsubishi says the service will be offered through dealerships in Japan and Europe later this year. Related Video:

Long-serving Mitsubishi president Masuko to step aside

Long-struggling Mitsubishi Motors is reportedly preparing for a changing of the guard at home. According to Reuters, Osamu Masuko will step aside in favor of Tesuro Aikawa, currently the company's managing director. Masuko won't be leaving the fold entirely, however - he will take the role of chairman, displacing Takashi Nishioka, who will resign. The shakeup has not been confirmed by Mitsubishi, but word is that the changes will take effect April 1.
Mitsu's US troubles are no secret, but the brand's struggles in its home market haven't been quite so publicized. The company was bailed out by other arms of the Mitsubishi empire, and it just raised $2 billion this month to buy back preferred shares that were issued during the bailout. Masuko served as president for nearly ten years, during which the brand's US efforts utterly stalled out, recalls cropped up in Japan and an alliance with Daimler (which was DaimlerChrysler at the time) disintegrated.
According to Reuters, establishing the kind of alliances that will allow the brand to grow, such as its tie-up with Renault-Nissan, are key to Mitsu's long-term success. The thought is that an alliance will allow the brand to come up with some innovative models that won't be compromised by its lack of production scale. It looks like Aikawa has his work cut out for him.