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| Mitsubishi share price crashes as officials raid offices | Mitsubishi share price crashes as officials raid offices |
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| The scandal engulfing Mitsubishi Motors has intensified after government officials raided one of its offices and shares in the Japanese carmaker plunged to an all-time low. | |
| Panicked by the revelation that Mitsubishi had overstated the fuel efficiency of more than 600,000 cars traders rushed to dump the stock, prompting a temporary suspension of shares. | |
| The mass sell-off on Thursday was on course to push shares down 20% as trades were halted amid an overwhelming number of sell orders, threatening to wipe off one-third of the company’s value in just two days. | The mass sell-off on Thursday was on course to push shares down 20% as trades were halted amid an overwhelming number of sell orders, threatening to wipe off one-third of the company’s value in just two days. |
| Related: Mitsubishi Motors admits manipulating fuel economy tests | Related: Mitsubishi Motors admits manipulating fuel economy tests |
| It followed a 15% fall in shares in Tokyo on Wednesday, when Mitsubishi admitted to falsifying data to flatter the mileage rates clocked up on the vehicles in question. | It followed a 15% fall in shares in Tokyo on Wednesday, when Mitsubishi admitted to falsifying data to flatter the mileage rates clocked up on the vehicles in question. |
| The crisis at the carmaker escalated further when Japanese officials raided one of its offices in Okazaki. | |
| The government said the case was “extremely serious” and has given Mitsubishi until 27 April to report on the matter. | The government said the case was “extremely serious” and has given Mitsubishi until 27 April to report on the matter. |
| Japan’s chief cabinet secretary, Yoshihide Suga, said: “Based on [the results of] the raid, and a report from the company, we would like to reveal the extent of the inaccuracies as soon as possible. | Japan’s chief cabinet secretary, Yoshihide Suga, said: “Based on [the results of] the raid, and a report from the company, we would like to reveal the extent of the inaccuracies as soon as possible. |
| “We will deal with the situation in a strict manner and would like to make sure of the safety of cars.” | “We will deal with the situation in a strict manner and would like to make sure of the safety of cars.” |
| Japan’s sixth biggest carmaker said tests were falsified on four of its mini-cars, two of which it manufactured for Nissan. The number of Nissan cars affected was 468,000, while 157,000 were sold under the Mitsubishi brand. | Japan’s sixth biggest carmaker said tests were falsified on four of its mini-cars, two of which it manufactured for Nissan. The number of Nissan cars affected was 468,000, while 157,000 were sold under the Mitsubishi brand. |
| Mitsubishi said the cars affected were only sold in Japan. However, it said it would extend its investigation to cover cars made for overseas markets. | Mitsubishi said the cars affected were only sold in Japan. However, it said it would extend its investigation to cover cars made for overseas markets. |
| Akira Kishimoto, analyst at JP Morgan, said the scandal could cost Mitsubishi more than 50bn yen (£314m), including compensation to Nissan and consumers plus the cost of replacing parts. | Akira Kishimoto, analyst at JP Morgan, said the scandal could cost Mitsubishi more than 50bn yen (£314m), including compensation to Nissan and consumers plus the cost of replacing parts. |
| Kishimoto added: “In addition to the costs of the scandal, the secondary effects on worldwide sales could be very large.” | Kishimoto added: “In addition to the costs of the scandal, the secondary effects on worldwide sales could be very large.” |
| Mitsubishi is the latest carmaker to be embroiled in scandal, after Volkswagen admitted last year that it rigged emissions tests. | Mitsubishi is the latest carmaker to be embroiled in scandal, after Volkswagen admitted last year that it rigged emissions tests. |
| VW has set aside €6.7bn (£4.8bn) to pay for the crisis and its shares are down almost one-third since the scandal was revealed in September. | VW has set aside €6.7bn (£4.8bn) to pay for the crisis and its shares are down almost one-third since the scandal was revealed in September. |