Another reason not to buy a DSM
06-11-2004, 05:29 PM
#1
1.0 BAR
Thread Starter
Join Date: Jan 2004
Posts: 432
Another reason not to buy a DSM
http://story.news.yahoo.com/news?tmp...subishi_motors
TOKYO - In a major blow to Mitsubishi Motors Corp. (news - web sites)'s hopes for revival, former president Katsuhiko Kawasoe was arrested Thursday on charges related to a cover-up of auto defects suspected in a fatal accident.
Five other Mitsubishi officials, including a former president and vice president at the truck unit, also were under arrest, police said.
The arrests come just weeks after several Mitsubishi officials were charged in a separate accident, and are a serious setback to a turnaround plan announced last month after the company's partner DaimlerChrysler refused to provide fresh infusions of cash.
Mitsubishi Motors' image has been badly tarnished and sales have fallen since it admitted four years ago it had systematically hidden auto defects and announced a massive recall.
Kawasoe, 67, resigned as president of the company in 2000 to take responsibility for the recall scandal, but denied any knowledge of the cover-up that had been going on for decades at the company.
Police now say Kawasoe and the others failed to follow orders from authorities to report auto defects, dealing only with reported problems dating back to March 1998 and choosing to overlook suspected clutch defects reported in 1996.
Those defects are suspected in an October 2002 accident, in which the driver of a Mitsubishi truck died after he crashed. Only this year did the truck unit acknowledge the defects that could cause clutch covers to crack and lead to brake failure.
Mitsubishi Fuso Truck & Bus Corp. President Wilfried Porth has acknowledged a "corporate culture of concealment," and has publicly apologized to the mother of a woman killed by a wheel that rolled off a Mitsubishi truck because of a suspected defect. That defect has resulted in belated recalls of thousands of trucks.
Mitsubishi Motors has announced 10 recalls this year affecting thousands of vehicles for dozens of defects it had kept hidden even after the attempt four years ago to come clean.
Authorities said all six of those arrested Thursday are in police custody. Prosecutors will be deciding whether to file official charges. Under Japanese law, a conviction for professional negligence resulting in injury is punishable by a prison term of less than five years or a fine under $4,500.
Mitsubishi Motors has announced one revival plan after the other in recent years, promising to beef up quality control under the guidance of DaimlerChrysler. But the spate of recalls has not ended.
"Regaining credibility is not an easy task amid a recurring emergence of recall cover-ups," Japan's top business daily Nihon Keizai Shimbun said Thursday.
Mitsubishi reported a 215 billion yen ($2 billion) loss for the fiscal year ended March 31 and expects to stay in the red this fiscal year. Although it is hoping to return to profitability by March 2007, sales in Japan have been plunging, dropping nearly 60 percent in May, for example, and are not expected to recover for months.
Mitsubishi Motors announced another turnaround plan last month with injections of money from the Mitsubishi group and other companies that will lower DaimlerChrysler's stake in the company from 37 percent to about 20 percent.
Mitsubishi Motors's shares rose 0.5 percent to close at 200 yen ($1.81) on Thursday on the Tokyo Stock Exchange.
Mitsubishi Motors President Yoichiro Okazaki, who took office in April, has repeatedly said the company is facing its last chance to survive and must fully disclose all hidden defects.
"We take this matter very seriously and intend to fully cooperate in investigations," he said. "We pray for the soul of the victim and offer our sincerest apologies to the family."
Discuss.
TOKYO - In a major blow to Mitsubishi Motors Corp. (news - web sites)'s hopes for revival, former president Katsuhiko Kawasoe was arrested Thursday on charges related to a cover-up of auto defects suspected in a fatal accident.
Five other Mitsubishi officials, including a former president and vice president at the truck unit, also were under arrest, police said.
The arrests come just weeks after several Mitsubishi officials were charged in a separate accident, and are a serious setback to a turnaround plan announced last month after the company's partner DaimlerChrysler refused to provide fresh infusions of cash.
Mitsubishi Motors' image has been badly tarnished and sales have fallen since it admitted four years ago it had systematically hidden auto defects and announced a massive recall.
Kawasoe, 67, resigned as president of the company in 2000 to take responsibility for the recall scandal, but denied any knowledge of the cover-up that had been going on for decades at the company.
Police now say Kawasoe and the others failed to follow orders from authorities to report auto defects, dealing only with reported problems dating back to March 1998 and choosing to overlook suspected clutch defects reported in 1996.
Those defects are suspected in an October 2002 accident, in which the driver of a Mitsubishi truck died after he crashed. Only this year did the truck unit acknowledge the defects that could cause clutch covers to crack and lead to brake failure.
Mitsubishi Fuso Truck & Bus Corp. President Wilfried Porth has acknowledged a "corporate culture of concealment," and has publicly apologized to the mother of a woman killed by a wheel that rolled off a Mitsubishi truck because of a suspected defect. That defect has resulted in belated recalls of thousands of trucks.
Mitsubishi Motors has announced 10 recalls this year affecting thousands of vehicles for dozens of defects it had kept hidden even after the attempt four years ago to come clean.
Authorities said all six of those arrested Thursday are in police custody. Prosecutors will be deciding whether to file official charges. Under Japanese law, a conviction for professional negligence resulting in injury is punishable by a prison term of less than five years or a fine under $4,500.
Mitsubishi Motors has announced one revival plan after the other in recent years, promising to beef up quality control under the guidance of DaimlerChrysler. But the spate of recalls has not ended.
"Regaining credibility is not an easy task amid a recurring emergence of recall cover-ups," Japan's top business daily Nihon Keizai Shimbun said Thursday.
Mitsubishi reported a 215 billion yen ($2 billion) loss for the fiscal year ended March 31 and expects to stay in the red this fiscal year. Although it is hoping to return to profitability by March 2007, sales in Japan have been plunging, dropping nearly 60 percent in May, for example, and are not expected to recover for months.
Mitsubishi Motors announced another turnaround plan last month with injections of money from the Mitsubishi group and other companies that will lower DaimlerChrysler's stake in the company from 37 percent to about 20 percent.
Mitsubishi Motors's shares rose 0.5 percent to close at 200 yen ($1.81) on Thursday on the Tokyo Stock Exchange.
Mitsubishi Motors President Yoichiro Okazaki, who took office in April, has repeatedly said the company is facing its last chance to survive and must fully disclose all hidden defects.
"We take this matter very seriously and intend to fully cooperate in investigations," he said. "We pray for the soul of the victim and offer our sincerest apologies to the family."
Discuss.
06-12-2004, 04:52 AM
#6
1.5 BAR
Join Date: Mar 2003
Posts: 811
Re:Another reason not to buy a DSM
Those defects are suspected in an October 2002 accident, in which the driver of a Mitsubishi truck died after he crashed. Only this year did the truck unit acknowledge the defects that could cause clutch covers to crack and lead to brake failure.
Think of it like this. If you sold a million cars and 20 of them had a problem where the clutch cover exploded and ruptured a brakeline and a few of them died of it. It's hard to be a big auotmobile president. Funny but true.
Think of it like this. If you sold a million cars and 20 of them had a problem where the clutch cover exploded and ruptured a brakeline and a few of them died of it. It's hard to be a big auotmobile president. Funny but true.
06-12-2004, 10:34 AM
#7
0.0 BAR
Join Date: Apr 2004
Posts: 0
Re:Another reason not to buy a DSM
Originally Posted by JD
Think of it like this. If you sold a million cars and 20 of them had a problem where the clutch cover exploded and ruptured a brakeline and a few of them died of it. It's hard to be a big auotmobile president. Funny but true.
isnt this all part of being a MFG. for anything? what motor company hasnt been sued for something like a seatbelt failure or something like that.
Im not stickin up for DSM, but this is life.
