Nissan Takes Control of Mitsubishi


Nissan will take a controlling stake in Mitsubishi after the latter’s fuel-economy scandal in Japan.

The scandal arose when Mitsubishi admitted it had falsified fuel-efficiency tests on at least 13 models over the last 25 years, resulting in a firestorm of negative publicity in its home market.

Mitsubishi said its investigation showed that company managers, under pressure to keep pace with fuel-economy rates reported by competitors, fabricated numbers while using procedures to calculate efficiency that did not comply with Japanese law.

The scandal has not had an impact in the United States and no cars here are affected. In fact, U.S. Mitsubishi sales have increased over the past year.

In Japan, though, the company is reeling, which has prompted Nissan to swoop in with a lifeline.

Continue reading >>>