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Mitsubishi admits to tampering with fuel economy data

Mitsubishi admitted this week to intentionally rigging fuel-economy testing in four of its models sold in Asia. The affected models are all so-called Kei class cars with sub-660cc engines manufactured at Mitsubishi's Mizushima plant in Okayama, Japan. About 157,000 of those cars are Mitsubishi eK wagons and eK Space models, and 468,000 are re-badged Nissan Dayz and Dayz Roox cars, which Mitsubishi produces for Nissan. The matter came to light after Nissan found inconsistencies in reported mileage data, which then led to Mitsubishi launching an internal investigation. The fraud was discovered to be related to falsified tire pressure data, which has an effect on mileage results – an important matter considering these kinds of vehicles are marketed by fuel economy. Mitsubishi said it has stopped manufacturing and marketing the affected vehicles. The news caused Mitsubishi's stock to plummet over 15 percent, slicing $1.2 billion off the company's value. When the eK models hit the market three years ago, they were decorated with a Good Design Award by the Japanese Ministry of Economy – a merit that is now surely tarnished. While Mitsubishi has been suffering in the US recently, with news of the Normal, Illinois plant closing, its small Mirage model has sold well. Related Video: Image Credit: Getty Images Green Plants/Manufacturing Mitsubishi Nissan Fuel Efficiency Hatchback Minivan/Van kei cars minicars

Mitsubishi Outlander PHEV gets major powertrain updates, Geneva reveal

Mitsubishi will put seven of its wares on display during press days at the Geneva Motor Show, the headliner being an updated 2019 Outlander PHEV. Engineers have upgraded the entire hybrid powertrain, starting with the switch from a 2.0-liter Otto cycle gas engine to a 2.4-liter Atkinson cycle gas engine. Mitsubishi hasn't revealed output numbers, but the carmaker promises "higher torque, smoother operation, and overall higher efficiency." Generator output, rear motor output, and lithium-ion drive battery output all go up by 10 percent, and battery capacity gets a 15 percent boost. Going off the specs on the Mitsubishi Cars site, that would take the rear motor up to 66 kWh and the battery capacity from 12 kWh to 13.8 kWh. Along with the extra battery output, the 2019 Outlander PHEV should be expected to switch into EV mode more often, and stay there longer. Two drive modes join the current programming, Sport and Snow sidling up with Normal and 4WD Lock. One must look closely to note the exterior revisions, almost all of which are up front: a new graphic on the front grille, new LED headlights, rectangular foglight bezels, and a more prominent front skid plate. A "more elaborate" two-tone, 18-inch wheel shakes things up along the flanks, a larger rear spoiler holds things down out back. We probably won't get a look at the interior until Geneva, but "new quilted fine leather upholstery, all-new hip-hugging front seats, revised switchgear, a new instrument panel, new trimming, rear A/C outlets, and more" await us. The new Outlander PHEV gets to Europe in late 2018, likely greeted with the same fever that's seen the SUV move 100,000 units there in three years. Related Video:

Auditor had questioned Nissan on payments in Ghosn scandal, source says

TOKYO — Nissan's auditor had repeatedly questioned transactions at the heart of allegations of financial misconduct by former chief Carlos Ghosn, but Nissan said they were proper, a person with direct knowledge of the matter said on Wednesday. Ernst & Young ShinNihon LLC questioned Nissan's management several times, chiefly around 2013, about purchases of overseas luxury homes for Ghosn's personal use and of stock-appreciation rights that were conferred on him. But the Japanese automaker said the transactions and financial reporting were appropriate, the source told Reuters on condition of anonymity. The revelation shows Nissan and its auditor were discussing the transactions, in apparent contrast with Nissan's contention that the alleged misreporting of benefits for Ghosn was masterminded by Ghosn and a key lieutenant. A spokesman for EY ShinNihon, the Japanese affiliate of global accounting firm Ernst & Young, said he could not comment on specific cases. A Nissan spokesman declined to comment. Ghosn was arrested on Nov. 19 as he arrived in Japan. Prosecutors accuse him of falsifying Nissan's annual reports to understate by about half his total compensation of some 10 billion yen ($90 million) over several years. The high-profile former executive has denied the allegations, according to Japanese media. Ghosn remains in custody and is unable to speak publicly. He is represented by former prosecutor Motonari Otsuru, according to Japanese media. Otsuru's law firm declined to comment on Wednesday, and Otsuru has not responded to requests for comment. Nissan has largely pinned the blame on Ghosn and Greg Kelly, a former representative director who was arrested along with Ghosn on the same allegations. "As a result of the investigation, we are certain these two are the masterminds," CEO Hiroto Saikawa told a news conference on Nov. 19, referring to Ghosn and Kelly. He declined to say whether others at Nissan were involved in the alleged wrongdoing. An internal investigation is ongoing, and Nissan says it is cooperating with prosecutors. Nissan and Mitsubishi Motors have removed Ghosn as chairman in the wake of his arrest. The French member of the three-firm alliance, Renault, retains him as chairman and CEO.