Mitsubishi forecasts YEN 145bn loss after fuel scandal

It will be the first loss for the Japanese industrial giant since 2008.

The company said it had put its forecasts on hold while it submitted a report on investigation results and preventative measures to Ministry of Land, Infrastructure, Transport and Tourism over the “improper conduct in fuel economy testing”.

Mitsubishi reported a 39% drop in net profit in the last financial year due to the scandal and rival car manufacturer Nissan has now taken a controlling stake.

Last week, Mitsubishi said it planned to give owners of four affected vehicles close to $1,000 in compensation for overstating the fuel efficiency of the cars.

It also said it was setting aside as much as $86m to reimburse customers for lost "eco car" tax breaks for affected models.

Mitsubishi said net sales would fall by 16% to YEN 1910.0bn year-on-year along with an 82% slump in operating profits to 25bn. Ordinary profits are expected to fall to YEN 32bn, a decline of 77%.

Retail unit sales were forecast to fall by 86,000 to 962,000, Mitsubishi said.