Following recent product recalls at Toyota and Honda, Mitsubishi is the latest Japanese car maker to announce a major recall. Shares in Mitsubishi fell 5.5% as they announced plans to recall 1.2 million cars in order to fix a faulty oil seal. This is part of a serious and long-running problem, as the company has already recalled 1.8 million cars. Mitsubishi has also received a reprimand from the Japanese authorities; the Japanese Transport Ministry said in a statement that it had warned the company for:
- Being “passive in its handling of the recalls”;
- “Having made inappropriate decisions”;
- “Providing the ministry with inappropriate explanation[s]”; and
- “Being insufficient [sic] in clarifying the causes of the recall”.
Meanwhile, US authorities have fined Toyota £10.7 million for being too slow in reporting problems. This fine, the largest allowed under US law, concerned a recall in June of this year but the company has already been fined over £30 million in the US.