Mitsubishi Motors Shares Crash Again On Fuel-Cheat Scandal

Mitsubishi Motors suffered another rout Friday, capping a disastrous week that has seen its shares plunge more than 40 percent after the automaker’s shock admission that it cheated on fuel-efficiency tests.

The news Wednesday that unnamed employees had made some of its cars seem more fuel-efficient than they were in reality has sent the firm into freefall, wiping $3.2 billion off its market capitalisation.

It lost 13.55 percent Friday to close at 504 yen. The near 42 percent drop since Wednesday marks the firm’s worst three-day decline since listing in 1988.

The scandal also raised questions about the company’s future as it faces the prospect of huge fines and lawsuits and comes as German auto giant Volkswagen struggles to restore its badly dented reputation after revelations in September of emissions rigging.

AFP

April 22, 2016