It appears that Mitsubishi’s problems run deeper than its recent fuel economy manipulation scandal, as an investigation into its practices found a corporate culture that prevented workers from pushing back against demands of the management, as well as infighting between departments, according to Automotive News.
A panel of external experts appointed by the company to look into its mileage testing practices revealed a systemic failure from within, which meant that blame could not be pinned onto any one department. The investigators pinpointed a number of factors, including a weak sense of the law, lack of unity between rank-and-file and management and refusal to admit that ambitious fuel consumption targets could not be met.
“The problem is not only with the testing, certification, or the development department,” said one of the investigators, Yoshiro Sakata, at a briefing in Tokyo on Tuesday. “It’s a collective failure of Mitsubishi Motors as a whole, starting from the management.”
Mitsubishi’s leadership has been put under the spotlight as a result of these findings, at a time when the company is aiming regain lost consumer trust after it disclosed that it manipulated fuel consumption figures and falsified test data. The company, which restarted production of its kei cars – where the false claims originated – after a two-month suspension, has seen two top executives step down and was rescued by Nissan, which is acquiring a 34% stake.
Nissan is sending former executive Mitsuhiko Yamashita to Mitsubishi as part of the rescue, in an attempt to revamp its research and development division and prevent such wrongdoing from happening again. Nissan CEO Carlos Ghosn is betting on damage from the scandal to be able to be contained within Japan, and hopes that an alliance with Mitsubishi can help it expand its South East Asian business.
Recommendations by the investigation panel listed in a handout included making Mitsubishi’s vehicle certification department truly independent from R&D to prevent a recurrence of such a scandal, as well as revamping the development process, restructuring the organisation, conduct more transparent personnel appointment and create a better understanding of laws.
Yamashita said at the briefing that Mitsubishi is considering a reduction in the number of management layers to improve communication. He also claimed that he will personally participate in discussions between executives and engineers in the future.
“I take the panel’s recommendation seriously,” said Mitsubishi chairman Osamu Masuko in a statement. “The efforts we’ve been making since I took over in 2005 haven’t been enough.”
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Mitsu – sifu for proton…
Our Government also got collective failure and now the shame of the whole world and yet, it is still going strong. Mitsubishi must learn from UMNO how not to have malu and yet put their heads high and proud of their failure.
Buddy, don’t tell the truth to the world… later police or MACC will issue saman.
Why u reply to ur own dupe?
Typical sucky Japanese work culture.
The older generation getting arrogant and complacent, they think with their past achievements, they know-it-all and think they’re always right, never ever wrong. Worse, Japan being Japan, kowtow to seniors is heavy emphasis in their work culture, so nobody persoal.
Good riddance. They’d rather be stubborn and bankrupt than lose ego and adapt to change.
In automotive industry, they’re on their last leg. In other industries like electronics, this kinda work culture explains why Samsung, LG is leader, while Panasonic, Sony, Hitachi, Toshiba etc all struggling, going bankrupt or sold off.
But their time will be up too. Tesla is showing fully electric is the future, the great equalizer that’ll level the playing field. Chinese are rising up too, it’s not unthinkable Chinese will destroy Japanese car industry in the near future. That, is why Samsung rather invest in Chinese carmaker than Japanese. There’s more openness and flexibility, key element why their progress rate is faster than Japanese.
When the time comes, Japan may not really have a solid answer to competitors.
But don’t worry, there’s always 3rd world shithole like us, Indonesia, Thailand, etc that won’t persoal Japanese. War will forever happen, so Hilux will be in demand indefinitely.
Smells strong personal prejudice against Japanese as a whole, though I agree partially regarding the scandals and bad financial performance among top makers with the exception of Hitachi (check your facts), as bad apples are everywhere.
Back to the topic, MMC actually has been doing well in EV development as can be seen on Outlander PHEV project, but I think due to the wrong management strategy to challenge the competitive kei car of JDM (Daihatsu and Honda lead in this segment), the employees struggled to face pressure from top in order to match the best fuel comsumption figure on market, thus breaching the ethics and compliances.
Unhealthy corporate culture indeed.
Since When Daihatsu and Honda lead the Japanese Kei Car Segment?
Suzuki is numero Uno
My facts based on the link below (latest 2016 statistics)
https://www.zenkeijikyo.or.jp/statistics/index_tusho.html
So are you one of jepunis overlords tried to reduce damage done?
Jepunis overlords can bungkus and kolos shops!
To think that Mitsubishi once dominated the kei car segment with the i. And being one of the few maverick and engineering-driven carmakers of the 90s. Sad times indeed for Mitsubishi fans.
I like Japan generally, friendly, polite people, makes great anime, beautiful country etc, but I’m aware their working culture is crap. It’s very well documented, and it’s a pity.
The world is changing, yet Japan is becoming stagnant. Many crisis is looming, and they’re not doing enough to solve them. Low birth rate, increasing aged generation, high national debt, stagnant economy, etc, the future looks gloomy for Japan.
Actually, crisis is beginning to rear its face in automotive industry. Takata is first huge casualty, they’re guaranteed bankrupt. Mitsubishi is effectively bailed out by Nissan. You get what I’m trying to say.
How dare u persoal our jepunis overlords! Albert, mari sini! Kasi potong kepla ni olang, nanti saya mintak overlord kita bagi up talibarut lu!
Of course I dare, I’m on Chinese side. I plotek plotek maruah Volvo. Heja Sverige!
China also got plotektion!
In another words: its a collective failure from the whole company, not from any person. Therefore nobody will get fired and nobody will get punished. Just move along and dun persoal.
I can see the similarity between VW and Mitsubishi. Management setting unrealistic goals and won’t accept proposed compromises from the engineering team. In the end, the management knowingly instructed the engineers to basically defraud consumers and government agencies in order to achieve those lofty goals. But truth can’t be hidden forever, and sh*t will eventually hit the fan for those involved.