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Mitsubishi Latest Car Maker in Product Recall

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.

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