mitsubishi-pajero-facelift-malaysia-cropped-18

Tetsuro Aikawa, president of Mitsubishi Motors has resigned in the wake of the fuel economy data scandal, the Nikkei Asian Review reports. His position will be filled temporarily by CEO Osamu Masuko, who will take on double duties until Nissan Motor completes its purchase of a 34% equity stake in Mitsubishi.

Based on the report, Aikawa took full responsibility for the scandal as he, who rose up the corporate ladder at Mitsubishi Motors, had his roots in the product development unit. Said unit, unfortunately, is also where the fuel economy data-rigging took place.

He is expected to leave after the independent committee compiles the final report in July, or during the stockholders meeting in June. Previously, Aikawa stated that he would not come to a decision involving his future at Mitsubishi Motors until findings have been released by the committee.

Nissan Mitsubishi

Meanwhile, Nissan will be putting one of its directors to head Mitsubishi Motors’ product development division after its own shareholders meeting on June 24. Mitsubishi Motors is planning to decrease its own directors from 13 to 11, while Nissan on the other hand is planning to install four directors, including a new chairman.

The fuel economy scandal had caused Mitsubishi Motors’ market value to drop by half within a span of a week. Following this, Nissan swooped in to take a 34% equity stake in MMC at a value of US$2.2 billion (RM8.8 billion).

The deal, which is expected to be concluded by the end of 2016, will see Nissan as the largest shareholder of MMC. Furthermore, it will also benefit Nissan in the very near future as the deal will provide the brand with added manufacturing scale, resulting in cheaper development costs.