TOKYO: Japanese automaker Mitsubishi Motors plans to compensate customers in a bid to limit the fallout from a fuel-efficiency cheating scandal. Authorities raided the company’s office on Thursday after the company admitted it had falsified efficiency data for hundreds of thousands of vehicles. Mitsubishi Motors shares plunged more than 40% in the three days after the news emerged, their worst hat-trick of losses since the company listed in 1988. The scandal has raised questions about the Japanese carmaker’s future, after German giant Volkswagen posted its first loss in 20 years in 2015 because of the fallout from its own huge emissions-rigging scandal. Mitsubishi Motors plans to offer to cover the extra fuel costs incurred by vehicle owners because their engines were less efficient than advertised.
Published in The Express Tribune, April 24th, 2016.
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