Mitsubishi CEO to resign due to fuel efficiency manipulation issue

Mitsubishi CEO to resign due to fuel efficiency manipulation issue. April. 28, 2016 07:27. by 도쿄=장원재특파원 peacechaos@donga.com.

Mitsubishi Motors' Chairman and CEO Masuko Osamu and President Aikawa Tetsuro will resign soon to take responsibility for the fuel efficiency manipulation issue. The situation has gone international as the U.S. Environmental Protection Agency requested on Tuesday (local time) that Mitsubishi Motors run a re-test on fuel efficiency and submit a report on the result. An independent investigation team within the company found out that fuel efficiency had been manipulated for 25 years. Many speculate that the company is on the edge of a precipice.

The Yomiuri Newspaper reported on Wednesday, "Chairman Masuko seemed to express his intention of resignation to some subsidiary sales companies and component makers." The company has retained outside counsels to form a special committee in charge of the investigation. The committee will complete the report by July, and Masuko and Aikawa will resign possibly after that.

Masuko worked for Mitsubishi Corporation before he became the president of Mitsubishi Motors in 2005. He has been in charge of the management for 10 years since then. The newspaper reported, "For the time being, Aikawa will be in charge of the internal investigation and compensation for customers."

The Mainichi Newspaper also reported, "Aikawa will resign after completing the current investigation conducted by the special committee." On the previous day, Aikawa stated in a press conference at the Ministry of Land, Infrastructure, Transport and Tourism, "This is a critical matter that can decide the company's fate. The wrongful measurement of fuel efficiency had been done for 25 years since 1991." The Japanese press is now talking about the possibility of Mitsubishi Motors' exit from the automobile market. Mitsubishi Motors was also denounced by the public outcry in 2000 and 2004 by hiding recall cases. Many speculate that the company would not be able to earn back customers' trust.

Shunichi Miyanaga, president of Mitsubishi Heavy Industry and the biggest stakeholder of Mitsubishi Motors, helped Mitsubishi Motors during the recall cases. However, Shunichi seems to be more cautious this time by saying, "I must be objective about this," at a press conference on Monday. In Korea, 1,316 Mitsubishi cars are currently registered.