Mitsubishi discloses more defects
06-08-2004, 09:12 AM
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Mitsubishi discloses more defects
Mitsubishi discloses more defects
By AUDREY McAVOY
Associated Press
TOKYO — Mitsubishi Fuso Truck & Bus Corp. on Tuesday disclosed an additional 93 vehicle defects based on an investigation going back to 1992, including some that reportedly caused 21 accidents resulting in physical injury.
The latest revelation comes as Mitsubishi Fuso tries to re-establish its credibility after acknowledging last month that officials had covered up wheel and clutch defects suspected of causing two fatal accidents. Prosecutors have charged former executives and current officials in those cases.
Last week, Mitsubishi Motors — which spun off Mitsubishi Fuso in 2003 — acknowledged it had failed to disclose all known defects in 2000, when it admitted to systematically covering up problems to avoid costly recalls.
Mitsubishi Fuso, which is 65 per cent owned by German-American auto maker DaimlerChrysler, said in a statement that some of the additional 93 defects resulted in accidents causing physical injuries.
It did not disclose the type or number of injuries, saying only that it would provide more details next Tuesday.
The Asahi newspaper and other Japanese media, however, reported the newly disclosed defects caused 21 accidents resulting in physical injury.
Mitsubishi Motors later issued a statement saying DaimlerChrysler is considering demanding compensation from the Japanese auto maker regarding Mitsubishi Fuso's “quality problems.”
DaimlerChrysler informed Mitsubishi Motors it is mulling the option based on the sales contract the two auto makers signed for the truck maker's shares.
DaimlerChrysler is still a major shareholder of Mitsubishi Motors, but said in April it would not provide fresh financing to the trouble Japanese auto maker.
Mitsubishi Fuso said the defects included “a number” which should have prompted recalls. The truck maker was investigating how many vehicles it would recall based on the latest problems.
The news coincided with an announcement by Japan's Transport Ministry that Mitsubishi Motors and Mitsubishi Fuso would be required to issue weekly reports to authorities about progress in their investigations into vehicle defects.
“It is an undeniable fact that problems at Mitsubishi seem to keep cropping up one after another,” said Transport Minister Nobuteru Ishihara.
As a part of an effort to prevent further cover-ups in the industry, the ministry also said it would require all auto makers to report to the ministry four times a year about serious defects in their vehicles and on accidents believed to have been caused by defects.
Mitsubishi Fuso said last week it would cut the pay of six executives and managers as punishment for the wheel and clutch defect cover-ups.
Another 23 employees of Mitsubishi Fuso were also penalized in the scandal, the company said.
source
By AUDREY McAVOY
Associated Press
TOKYO — Mitsubishi Fuso Truck & Bus Corp. on Tuesday disclosed an additional 93 vehicle defects based on an investigation going back to 1992, including some that reportedly caused 21 accidents resulting in physical injury.
The latest revelation comes as Mitsubishi Fuso tries to re-establish its credibility after acknowledging last month that officials had covered up wheel and clutch defects suspected of causing two fatal accidents. Prosecutors have charged former executives and current officials in those cases.
Last week, Mitsubishi Motors — which spun off Mitsubishi Fuso in 2003 — acknowledged it had failed to disclose all known defects in 2000, when it admitted to systematically covering up problems to avoid costly recalls.
Mitsubishi Fuso, which is 65 per cent owned by German-American auto maker DaimlerChrysler, said in a statement that some of the additional 93 defects resulted in accidents causing physical injuries.
It did not disclose the type or number of injuries, saying only that it would provide more details next Tuesday.
The Asahi newspaper and other Japanese media, however, reported the newly disclosed defects caused 21 accidents resulting in physical injury.
Mitsubishi Motors later issued a statement saying DaimlerChrysler is considering demanding compensation from the Japanese auto maker regarding Mitsubishi Fuso's “quality problems.”
DaimlerChrysler informed Mitsubishi Motors it is mulling the option based on the sales contract the two auto makers signed for the truck maker's shares.
DaimlerChrysler is still a major shareholder of Mitsubishi Motors, but said in April it would not provide fresh financing to the trouble Japanese auto maker.
Mitsubishi Fuso said the defects included “a number” which should have prompted recalls. The truck maker was investigating how many vehicles it would recall based on the latest problems.
The news coincided with an announcement by Japan's Transport Ministry that Mitsubishi Motors and Mitsubishi Fuso would be required to issue weekly reports to authorities about progress in their investigations into vehicle defects.
“It is an undeniable fact that problems at Mitsubishi seem to keep cropping up one after another,” said Transport Minister Nobuteru Ishihara.
As a part of an effort to prevent further cover-ups in the industry, the ministry also said it would require all auto makers to report to the ministry four times a year about serious defects in their vehicles and on accidents believed to have been caused by defects.
Mitsubishi Fuso said last week it would cut the pay of six executives and managers as punishment for the wheel and clutch defect cover-ups.
Another 23 employees of Mitsubishi Fuso were also penalized in the scandal, the company said.
source
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