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Mitsubishi Motors' minicar sales dive 45% in wake of scandal- Nikkei Asian Review
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src="/web/20160505121422im_/http://asia.nikkei.com/var/site_cache/storage/images/node_43/node_51/2016/201605/0502n/0502n-mitsubishi-motors-mizushima/4441114-1-eng-GB/0502N-Mitsubishi-Motors-Mizushima_article_main_image.jpg" width="580" alt=""/> <p class="img-caption"> Mitsubishi Motors halted production of minicars at the Mizushima plant. </p> </div> </div> <div class="article-box detail"> <div class="wysiwyg_area"> <div class="articleBodyText"> <p>OSAKA -- <a href="/web/20160505121422/http://asia.nikkei.com/Company/05HWGM-E" target="_self" alt="05HWGM-E" class="mwMoTrg">Mitsubishi Motors</a> saw sales of new minivehicles plunge 44.9% on the year in April, the same month the embattled car company admitted to falsifying fuel-economy data.</p><p>Domestic minicar sales for Mitsubishi Motors came to 1,477 vehicles last month, data compiled by the Japan Light Motor Vehicle and Motorcycle Association shows. At the same time, <a href="/web/20160505121422/http://asia.nikkei.com/Company/05HK04-E" target="_self" alt="05HK04-E" class="mwMoTrg">Nissan Motor</a>'s minicar sales tumbled 51.2% to 5,574 units. Mitsubishi Motors makes minicars for Nissan on a contract basis.</p><div class="page_limit free"></div><div class="page_limit"></div><p>Sales of Mitsubishi's eK Wagon and eK Space, and Nissan's Dayz and Dayz Roox were suspended April 20, the same day the data manipulation came to light.</p><p>The four models were the biggest volume sellers domestically for both companies. The eK series accounts for just over 40% of Mitsubishi Motors' new car sales in Japan, while the Dayz lineup tops 20% of Nissan's sales.</p><p>Mitsubishi Motors manufactures all four models at the Mizushima plant in southwest Japan's Okayama Prefecture. The company has frozen production of minivehicles at that location and temporarily furloughed about 1,300 of the plant's roughly 3,600 employees.</p><p>The move is having a ripple effect on suppliers in the area, who say the impact will likely be protracted. On Monday, representatives for three firms belonging to the Wing Valley Cooperative, an association of parts makers for the Mizushima plant, filed an emergency petition with Okayama Prefecture's governor and prefectural assembly chairman asking for support to weather the production freeze. Two other companies in the city of Kurashiki, the site of the factory, joined the push.</p><p>The affected companies have requested loosened standards for employment-adjustment subsidies, as well as help in finding furloughed employees temporary staffing jobs. In addition, the companies are seeking an expansion of the prefectural financing system, a broadening of a local credit guarantee system and other relief measures, citing production cuts and worsening business conditions.</p><p>On Monday, Kurashiki authorized an assistance package that includes low-interest loans of up to 50 million yen ($469,000) to companies whose year-on-year sales stand to decline 10% or more during the three months after the Mizushima production stoppage.</p><p>(Nikkei)</p> </div> </div> <div id="modal-screen_zoom"></div> </div> <div id="05HWGM-E" class="cmp-smy-balloon"> <div class="cmp-smy-balloon-inr"> <h3 class="mwmo-title"><a href="/web/20160505121422/http://asia.nikkei.com/Company/05HWGM-E">Mitsubishi Motors Corp.</a></h3> <p class="a300ctry">Japan</p> <table> <tr> <th>Market(Ticker):</th> <td>TKS(7211)</td> </tr> <tr> <th>Sector:<br>Industry:</th> <td>Consumer Durables<br>Motor Vehicles</td> </tr> <tr> <th>Market cap(USD):</th> <td>4,256.31M</td> </tr> <tr> <th>Shares:</th> <td>983.66M</td> </tr> </table> <div class="more"> <a href="/web/20160505121422/http://asia.nikkei.com/Company/05HWGM-E">about Mitsubishi Motors Corp.</a> </div> </div> </div> <div id="05HK04-E" class="cmp-smy-balloon"> <div class="cmp-smy-balloon-inr"> <h3 class="mwmo-title"><a href="/web/20160505121422/http://asia.nikkei.com/Company/05HK04-E">Nissan Motor Co., Ltd.</a></h3> <p class="a300ctry">Japan</p> <table> <tr> <th>Market(Ticker):</th> <td>TKS(7201)</td> </tr> <tr> <th>Sector:<br>Industry:</th> <td>Consumer Durables<br>Motor Vehicles</td> </tr> <tr> <th>Market cap(USD):</th> <td>40,099.74M</td> </tr> <tr> <th>Shares:</th> <td>4,494.71M</td> </tr> </table> <div class="more"> <a href="/web/20160505121422/http://asia.nikkei.com/Company/05HK04-E">about Nissan Motor Co., Ltd.</a> </div> </div> </div> <!-- balloon --> <div class="pagination no-border"></div> <div class="related-company"> <h2 class="related-header">Related companies</h2> <p class="company-list"> <a href="/web/20160505121422/http://asia.nikkei.com/Company/05HWGM-E">Mitsubishi Motors Corp.</a>, <a href="/web/20160505121422/http://asia.nikkei.com/Company/05HK04-E">Nissan Motor Co., Ltd.</a> </p> </div> <div class="related-list"> <p class="related-header">Related stories</p> <ul class="point-list"> <li><a href="/web/20160505121422/http://asia.nikkei.com/Business/Companies/Will-the-rest-of-Asia-overlook-Mitsubishi-Motors-cheating-ways">Will the rest of Asia overlook Mitsubishi Motors' cheating ways?</a></li> <li><a href="/web/20160505121422/http://asia.nikkei.com/magazine/20160428-Commodities-crucible/Special-Report/Mitsubishi-Motors-pays-for-repeating-its-mistakes">Mitsubishi Motors pays for repeating its mistakes</a></li> <li><a href="/web/20160505121422/http://asia.nikkei.com/Business/Trends/Japan-car-sales-climb-for-first-time-in-over-a-year">Japan car sales climb for first time in over a year</a></li> </ul> </div> <div class="OUTBRAIN" data-src="https://web.archive.org/web/20160505121422oe_/http://asia.nikkei.com/Business/Companies/Mitsubishi-Motors-minicar-sales-dive-45-in-wake-of-scandal" data-widget-id="AR_1" data-ob-template="Nikkei_Asian_Review_EN"></div> <script type="text/javascript" async="async" src="https://web.archive.org/web/20160505121422js_/http://widgets.outbrain.com/outbrain.js"></script> <div class="link-box GCCMD_removeall"> <!-- Follow Nikkei Asian Review --> <h2 class="title">Follow Nikkei Asian Review</h2> <div class="follow-nar"> <dl> <dt><div class="fb-like" data-href="https://www.facebook.com/nikkeiasianreview/" data-layout="button_count" data-action="like" data-show-faces="false" data-share="false"></div></dt> <dd class="Facebook">The best content posted</dd> <dt class="Twitter"><a href="https://web.archive.org/web/20160505121422/https://twitter.com/NAR" class="twitter-follow-button" data-show-count="false">Follow @NAR</a> </dt> <dd class="Twitter">The latest headlines tweeted</dd> </dl> </div> </div> </div> <script type="text/javascript"> <!-- cms_section = 8; 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