Mitsubishi znak.jpg
Photograph: Photo by Björn Láczay, used under CC BY-SA

Mitsubishi Motors braced for a net loss of 145 billion yen (1.4 billion dollars) for the current financial year due to massive compensation costs related to its fuel economy scandal, it said Wednesday.

The figure will mark the first net loss in eight years, compared with a net profit of 72.6 billion yen in the previous financial year, Mitsubishi Motors said in a statement.

The carmaker also predicted an operating profit of 25 billion yen for the year through March 2017, down 81.9 per cent from the year before, while sales are estimated at 1.9 trillion yen, down 16 per cent.

Domestic vehicle sales are expected to plunge 41 per cent in the year, the carmaker said.

Japan's sixth-largest carmaker revealed in April that it had falsified data on fuel economy tests for four mini vehicles, including two manufactured for Nissan Motor.

The scandal spread to other models in Japan as the manufacturer of the Pajero sport-utility vehicle and the i-MiEV electric car acknowledged last week it had found irregularities in fuel economy data for all 29 models in the past 10 years.

On Tuesday, the Transport Ministry said its own tests showed the carmaker exaggerated mileage on its vehicles by up to 16 per cent.

Nissan agreed last month to take a 34-per-cent stake in Mitsubishi Motors for 237 billion yen in order to turnaround the embattled carmaker.

In 2000, Mitsubishi was rocked by a recall-cover-up scandal. The carmaker admitted it had concealed defect information for its vehicles for decades.

Related stories

Latest news

Six injured, 96 detained in Berlin fan clashes

Six people were treated in hospital and 96 detained in clashes in Berlin between fans of Hertha Berlin and Eintracht Frankfurt, police said Sunday.

Croatian government condemns extremism

The Croatian government on Sunday condemned all forms of extremism and acts of provocative nature aimed against the Serb minority in Vukovar as well as the rally organised by the Autochthonous Croatian Party of Rights (A-HSP) in Zagreb on Friday.

Approx. 7,500 migrants prevented from illegally entering Serbia in past 8 months

In the past several months, the authorities have prevented the illegal entry of approximately 7,500 migrants on Serbian soil. Serbian Interior Minister Nebojsa Stefanovic said Sunday.

Merkel's conservatives and Schulz's centre-left draw even in survey

Voter support for the German centre-left Social Democrats (SPD) is on par with Chancellor Angela Merkel's conservatives, a survey published Sunday showed.

Police arrest A-HSP party chief at rally in Zagreb

Police arrested Autochthonous Croatian Party of Rights (A-HSP) chief Drazen Keleminac for disturbing the peace at a public rally organised by the A-HSP in Zagreb on Sunday.

Kidnapped German archaeologists freed in Nigeria

Two German archaeologists who were kidnapped in northern Nigeria have been released, police said Sunday.

Turkey has built 290 kilometres of wall on border with Syria

Turkey has erected 290 kilometres of a planned 511-kilometre wall along its border with Syria, local media reported Sunday, citing the head of the building authority in charge of the project.

Syrian forces close in on city held by Turkish-backed rebels

Syrian government forces on Sunday seized a town from the Islamic State extremist militia near the northern city of al-Bab already under the control of Turkish-backed rebels, Syrian state media and monitors reported.

At least 90 Christian families escape Sinai attacks

At least 90 families reached Egypt's Ismailiya governorate, after escaping targeted killings by a local Islamic State militia in northern Sinai in recent days, an official at the Coptic Orthodox Church said Sunday.

40,000 Croats suffer from anorexia and bulimia

More than 40,000 Croatians, mostly girls and young women aged between 12 and 30, suffer from anorexia, bulimia or some other eating disorder and that number is growing each year, experts at the centre for eating disorders BEA have reported.

Iranian ex-president Ahmadinejad praises Trump

Former Iranian president Mahmoud Ahmadinejad wrote a personal letter to Donald Trump in which he praised the US president and wished him well in his tenure, local media reported Sunday.

Russians honour slain opposition leader Nemtsov in Moscow rally

A demonstration on the second anniversary of the assassination of Russian opposition leader Boris Nemtsov drew thousands of people to the streets of Moscow on Sunday.