business

Mitsubishi Motors president to resign over mileage scandal

9 Comments
By YURI KAGEYAMA

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9 Comments
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From where he was immediately arrested and charged with ... well, what? Cos I bet that legally his company has done nothing wrong. And this is not a defence of the company but a criticism of the law. Apparent company wrongdoing or scandals rarely seem to result in convictions, usually because there is no, or very weak, law against behaviour like falsifying data or labels or profits.

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There might be a case here base on negligence if the end users file a class action against M motors. I reckon all the top dogs plus senior management has to go not only the president. The disease is eating M motors alive and it's now part of the company's culture. Overhaul the M motors management is imperative for the organization to survive. Although I really like the Projero and Lancer Evolution brand, I will never actually buy one (new/old) because of the constant management scandals.

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Part of the problem is that the automakers do their own testing for gas mileage under standards set by regulators. This is unlikely to change. It would be nearly impossible for the government to do all the tests themselves without an immense amount of funding. Believe the disclaimer: Your mileage may vary. As for the automakers, those overstated ratings probably aren't worth it in the long run. Automakers who cheat the system are only creating ill will among buyers. Just ask VW.

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http://www.bloomberg.com/news/articles/2016-05-18/mitsubishi-motors-scandal-was-an-accident-waiting-to-happen?cmpid=yhoo.headline

The article linked above explained what happened. This President honestly did not know about the fuel efficiency issues until recently. The pressure to get high fuel efficiency was true, but MMC engineers could not meet the standards. Many of the good ones left after the earlier MMC quality scandals.

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Still has job at MMC, just not the president. Not exactly a problem for him.

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Part of the problem is that the automakers do their own testing

It is the whole and only problem. Japanese corporations (the big ones) are allowed to do their own regulations, leading to cheat and deceive Japanese consumers in total impunity.

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He does not need to resign -- he is fired.

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How do you make parachutes out of gold?

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So the top man in the company had no idea of the systematic fraud. That in itself is culpable and he should be put into jail for that alone. But I am sure he must have known because they have been doing it for years. You must make the figures better at any cost but I don't want it to be illegal but you might lose your job if you don't make the numbers better. We all know the outcome of that in Japan, and so do the bosses.

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