Mitsubishi Motors involved in a scandal that damaged both prestige and financial earnings in the early 2000s.
The company hidden the production misconceptions in their cars in a stable form for more than 20 years. Let us take you real to our content to find out the curtain of this scandal.
What happened, aski an employee appeared with the notice.
A person who previously worked in Mitsubishi reported to the Japanese Ministry of Transportation and an investigation was opened. As a result, the company revealed that the security problems are covered up according to the eye. Moreover, they did this from 1977 to 2000.
They had risked the lives of millions of people rather than dealing with all security problems and customers’ complaints.
With the emergence of the scandal, Mitsubishi recalled 1.35 million vehicles.
In the midst of defects in all these recalled vehicles, there were significant danger problems for drivers with braking faults, fuel tank problems and clutch errors.
Initially, the company was forced to undertake everything it did due to increasing evidence and public pressure, although the company tried to underestimate the seriousness of the situation.
Moreover, the investigations showed that this covering was settled in the company’s culture and that it was forced to hide the employees instead of reporting security violations.
Of course, this negligence, which continued systematically, shook the belief of both users and investors.
There were also financial sanctions.
The cost of recalls and the cost of legal compensation, the naturally decreased customer trust, the company’s sales went down to the sales. Mitsubishi had to go to major changes in internal functioning.
More strict quality inspection measures were introduced and more transparency was provided in the reporting processes.
In 2006, Takashi Osami, one of the former leaders of Mitsubishi Fuso, had to pay a fine of 200,000 (approximately $ 1,800) due to security violations, but a certain number of compensation and penalties paid by the company was not announced. It is known that billions of new financial losses experienced financial losses.
The company’s prestige has not fully improved for a long time. This scandal was engraved in Mitsubishi’s past as a black spot.