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Investor News - 25/04/2016

Vigeo Eiris severely downgrades Mitsubishi Motors’ rating

On April 21st, Vigeo Eiris severely downgraded its scores in its Equitics© Rating* for Mitsubishi Motors following the admitted false claims on fuel efficiency of its vehicles.

In a press conference held by its President on April 20th 2016, Mitsubishi Motors admitted the manipulation of test data to make false claims on fuel efficiency for 625,000 cars, some of which were manufactured for Nissan. Mitsubishi Motors admitted that publicly-released fuel-economy levels were higher than stated in test results.

The manipulation of the calculation methods and equipment used during fuel efficiency tests in Japan challenges the levels of assurance that Vigeo Eiris had previously made about Mitsubishi Motors’ performance on environment, governance, business ethics and community involvement.

Vigeo Eiris’ opinion is highly downgraded on the capacity of the automobile manufacturer to mitigate its reputational and legal security risks, and its ability to ensure the efficiency of its internal processes. While the Volkswagen scandal already severely tarnished auto makers’ image within the public sphere, these revelations may alter Mitsubishi Motors’ position on the market (the company already stopped producing the concerned vehicles) as well as its attractiveness among investors (the company’s share price dropped by 15% following Mitsubishi Motors’ announcement on April 20th).

 

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Keywords : Rating, World