Mitsubishi Motors forecasts 41% drop in retail sales in Japan over improper fuel consumption testing
Mitsubishi Motors Corporation (MMC) announced its forecasts for the FY2016 full-year (April 1, 2016 to March 31, 2017). The announcement on the FY2016 forecasts were put on hold to assess the future impact from the improper testing of fuel consumption announced in April. (Earlier post.)
On 17 June, MMC submitted a report on the investigation results as well as preventative measures to Ministry of Land, Infrastructure, Transport and Tourism concerning the improper conduct in fuel economy testing.
For FY2016 operating results, MMC forecasts net sales of ¥1910.0 billion (US$18.3 billion), a decrease of 16% year-on-year. Operating income plunges 82% to ¥25 billion yen (US$240 million), a decrease of 82% year-on-year. Net income will be -¥145 billion (-US$1.39 billion).
MMC’s global sales forecast for FY2016 is 962,000 units, a decrease of 8% or 86,000 units over the same period in FY2015. Sales volumes by region are as follows:
- Japan: 60,000 units, down 41% or 42,000 units year-on-year
- North America: 138,000 units, up 2% or 3,000 units year-on-year
- Europe: 187,000 units, down 9% or 19,000 units year-on-year
- Asia: 331,000 units, up 3% or 9,000 units year-on-year
- Other regions: 246,000 units, down 13% or 37,000 units year-on-year