According to Suzuki Motor Corp, the company used incorrect fuel economy testing methods, leading to a slump in its shares amidst a fuel efficiency cheating scandal in Japan, which left its rival company, Mitsubishi Motors Corp on the verge of collapse. Osamu, the company’s chairman is expected to update the media in the evening in Tokyo.
The company’s spokesman Hidehiro Hirano confirmed that the chair will disclose details of the matter to the country’s transport authority, denying the company’s knowledge of any mishap on the fuel efficiency of its vehicles without offering any further details on the topic.
Suzuki focuses on the manufacture of small vehicles with engine capacities that range up to 660cc, something that has seen the automaker consume almost 33% of the entire small vehicle market in the country and enjoys sizeable tax benefits under Japanese policies.
Adherence to the fuel economy standards has in the recent times come under keen scrutiny following the confession of Mitsubishi last month admitting that it had given fake fuel economy figures for a number of its small road vehicle models, adding that it had applied non-conforming data in arriving at the mileage values for other models. According to analyst Koji Endo, the implication is bad whether or not they manipulated the figures following its rival company’s scandal.
Shares of the fourth ranking Japanese automanufacter by sales dwindled 11% in afternoon trade. At their worst dropping 15 percent, registering their lowest value ever since the eleventh month of 2013.
The Ministry of transport for Japan demanded the fresh submission of fuel economy readings on each and every auto vehicle by carmakers following the confession of Mitsubishi which admitted the falsification of fuel economy readings last month, giving a deadline of Wednesday.
Mitsubishi has given the go ahead for the sale of 33% of its stake to Nissan Motor Co following the misconduct. The automaker is also anticipated to provide detailed information on the number of its vehicles which the erroneous data was used to compute mileage readings as the day progresses.
According to a report by the Nikkei, Mitsubishi Motors’ president, Tetsuro Aikawa, is due to resign as a consequence of the scandal.