Mitsubishi admits to falsifying fuel economy data

Mitsubishi Motors shares plunged in late trading to close down more than 15% in Tokyo, after initial reports surfaced that one of its models had failed a fuel economy test.

At a press conference after markets closed, the company admitted tyre pressure figures were falsified by employees to improve mileage in the tests.

It confirmed 157,000 of its own vehicles and 470,000 made for competitor Nissan were involved in the scandal, all of which were destined for the Japanese market.

The company said it was investigating where data was altered for vehicles sold overseas.

Mitsubishi bosses bowed deeply at the beginning of the conference.

“The wrongdoing was intentional. It is clear the falsification was done to make the mileage look better. But why they would resort to fraud to do this is still unclear,” said president Tetsuro Aikawa.

“I feel responsible,” he said, although he claimed to be unaware of the irregularities.

The issue was apparently first flagged by Nissan, when it noticed irregularities between the Mitsubishi data and its own tests.

Mitsubishi confirmed the issue had been reported to the country’s transportation ministry, and Nissan dealers were instructed to stop selling the cars immediately.

The news came as a major blow for the Japanese carmaker - which holds a significant markets share in Japan and Pacific Rim markets.

It had been rocked by a defects scandal in the early 2000s, in which problems such as failing brakes, faulty clutches and detaching fuel tanks were covered up.