Suzuki Motor Corp have reportedly admitted to have used improper fuel economy testing methods, which never complied with the state regulations in Japan. This is in aftermath of the Mitsubishi’s admission of fuel economy manipulations (since the year 1991) last month. Japan's transport ministry has asked the country's automakers to re-submit fuel economy readings on all their vehicles. I guess Suzuki was left with no choice other than to admit it!
So, why cheat? Suzuki specializes in the highly competitive mini-vehicles up to 660 cc segment in Japan and holds one-third market share in the segment right now. These vehicles get a preferential tax treatment in Japan. In a statement, Suzuki said that it had used fuel efficiency and emission testing methods that were different from Japanese regulations on 16 models now sold in the country, but that proper testing showed no need to amend the data. These tests dates back to 2010 and around 2.1 million vehicles will be affected by this. But, Suzuki says this discrepancy does not effect any Suzuki-badged vehicles sold aboard.
Suzuki shares went tumbling down, almost 15% (lowest since November 2013) as the scandal which engulfed Mitsubishi motors recently widened. Suzuki is the fourth largest auto maker in Japan by sales. Earlier, Mitsubishi agreed on to sell a one-third stake to Nissan Motor Co in the wake of the scandal. Suzuki Chairman Osamu Suzuki will present a report to Japan's transport ministry and brief the press later today.
So, will it have repercussions in India, which is Suzuki's largest market? Not likely, apart from the fact the share prices (slumped 4% on Wednesday) dropping. I guess the ARAI (Automotive Research Association of India) does a good job of ensuring that the auto makers comply to certain standards while testing. What do you guys think?
Source:- Economic Times.
So, why cheat? Suzuki specializes in the highly competitive mini-vehicles up to 660 cc segment in Japan and holds one-third market share in the segment right now. These vehicles get a preferential tax treatment in Japan. In a statement, Suzuki said that it had used fuel efficiency and emission testing methods that were different from Japanese regulations on 16 models now sold in the country, but that proper testing showed no need to amend the data. These tests dates back to 2010 and around 2.1 million vehicles will be affected by this. But, Suzuki says this discrepancy does not effect any Suzuki-badged vehicles sold aboard.
Suzuki shares went tumbling down, almost 15% (lowest since November 2013) as the scandal which engulfed Mitsubishi motors recently widened. Suzuki is the fourth largest auto maker in Japan by sales. Earlier, Mitsubishi agreed on to sell a one-third stake to Nissan Motor Co in the wake of the scandal. Suzuki Chairman Osamu Suzuki will present a report to Japan's transport ministry and brief the press later today.
So, will it have repercussions in India, which is Suzuki's largest market? Not likely, apart from the fact the share prices (slumped 4% on Wednesday) dropping. I guess the ARAI (Automotive Research Association of India) does a good job of ensuring that the auto makers comply to certain standards while testing. What do you guys think?
Source:- Economic Times.
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