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Mitsubishi President Resigns In Wake Of Fuel Economy Scandal

19 May 2016 - Autoblog

Mitsubishi President Resigns In Wake Of Fuel Economy Scandal

Mitsubishi has announced the resignation of two of its top executives as the company is embroiled in a scandal over its fuel-economy figures.

Chief among the resignations is Tetsuro Aikawa, the company's president and chief operating officer (pictured above at left, bowing), who assumed the position less than two years ago. Joining Aikawa-san on the way out is Ryugo Nakao, one of three executive vice presidents of the company and the man responsible for product planning and quality at Mitsubishi.

Though two of his principal deputies are leaving, the top executive at Mitsubushi retains his seat for the time being. Osamu Masuko (pictured above at right, seated) serves as both chairman and CEO, however with Nissan assuming over a third of the company's ownership, Masuko-san could still be replaced. A shareholders meeting is scheduled for June 24, when Aikawa and Nakao's resignations are set to take effect. According to the statement below, the company "will decide on the successors of both Representative Directors at our board of directors' meeting and make an announcement promptly."

The resignations of the top officials come in the wake of revelations that Mitsubishi had falsely reported the fuel-economy figures of its vehicles for decades. The broadening scandal was uncovered when Nissan tested vehicles which Mitsubishi manufactures on its behalf and found discrepancies. As his company prepares to take control of the ailing automaker, Nissan chief Carlos Ghosn says that the greatest challenge will be restoring Mitsubishi's reputation.

In a similar development, Suzuki also admitted to improper fuel-economy testing. The rival automaker claims that the measures were taken without the knowledge of senior management.

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