Mitsubishi Motors Corp. on Friday reported its first quarterly operating loss in nearly six years as the automaker struggles to recover from a slump in domestic sales after admitting to overstating the mileage of its vehicles.
Japan’s sixth-largest car maker by sales posted a ¥36.2 billion operating loss in the quarter to September, its first since the April-June quarter of 2010.
This resulted in a half-year loss of ¥31.6 billion, in line with a downgraded forecast for a loss of ¥32 billion issued last week.
Mitsubishi expects to post an operating loss of ¥27.6 billion in the year to March, as it makes provisions to cover quality-related issues and takes a hit from a stronger yen.
The company anticipates this will result in an annual net loss of ¥239.6 billion, plunging the company deeper into the red than previously forecast.
The mileage scandal has dealt a blow to MMC, tarnishing its brand and wiping out nearly 40 percent off its share price since April, when it broke.
The company will join the Nissan-Renault alliance after Nissan last week completed a deal to take a 34 percent controlling stake in Mitsubishi in a ¥237 billion deal, and pledged to help its smaller rival recover from the scandal.
In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.