CASE STUDY

MITSUBISHI MOTORS ADMITS FALSIFYING FUEL

ECONOMY RATE
PREPARED BY: JESFER VAN L. DIOAYAN
 TIME CONTEXT:
 The problem was detected when the Nissan
(one of the Mitsubishi’s seller) found
inconsistencies. It was said that by the
company that the fuel economy data were
falsified by employees to flatter mileage rates
 BACKGROUND
 MITSIBUSHI begins on 1870 when the
founder Yataro Iwasaki started a shipping firm
with three aging steamships.
 This company is s Japan's largest trading
company (sogo shosha) and a member of
the Mitsubishi keiretsu. Mitsubishi Corporation
employs over 60,000 people and has seven
business segments,
including finance, banking, energy, machinery,
 chemicals and food.
 VIEWPOINT
 The management believes that increasing the
mileage rate performance of a car can bring
them good potential benefit from something.
 PROBLEM
MAIN PROBLEM: REBUILDING IMAGE after
admitting  falsifying fuel economy data.

SECONDARY PROBLEM: Shares in Mitsubishi Motors

closed down 131 yen at 733 yen in Tokyo - their
biggest one-day fall in nearly 12 years

ISSUE: It seems Mitsubishi deliberately used the wrong

tyre pressures, as a way of cheating the treadmill test
to get more miles per gallon out of the car.
Artificially over-inflated tyres give better results.
 OBJECTIVE
 Ti regain consumer, dealer, seller, and the
government’s trust in order for the company to
get its reputation back.
 FACTS OF THE CASE
 Almost 470,000 vehicles that Mitsubishi made
for Nissan were affected from the manipulation
of fuel economy data.
 The announcement sent shares in Mitsubishi
down more than 15% in Tokyo.
 SWOT ANALYSIS
A. STREGNTHS : they have a good history of
product quality and service
B. WEAKNESSES: the personal interest of each
employees and the owners and lacking
supervisory
C. OPPORTUNITIES: higher sales and good
equilibrium
D. THREATS: The management interest and
lacking of supervisory
 ALTERNATIVE COURSES OF
ACTION
 The company must take its responsibility
towards the fraud and re-examine the cars and
see if there’s a problem on fuel consumption
and must be fixed immediately.
 The company must add some supervisory
channel and all works must be reported
properly.
 Before taking actions, it must be discuss first by
the owners and the managers.
 CONCLUSION &
RECOMENDATION
Sometimes the best thing to do is to accept and
learn from our mistakes. Facing and taking
action towards our responsibilities is a must, in
order to deal and settle this kind of mess.
There’s a need of re-organization in part of the
administrative body and the company must
strongly promote transparency.
 Application of Theoretical/Conceptual
Framework:

 A good company is entangled with ethical

principles, principles that provides good
approaches to every problem encountered
during operation. So in order for a company to
have business ethic, all members of the
company should manifest this kind of ethical
principles first to carry out a good company
conduct.
 Practical Application and Its
Implications for Future Managers:
 We should always think on the company’s
reputation and build quality relationship to
present and potential stakeholders
Integration of Values, Faith, and Learning:

 We should always cling our action to what is

right and let success approach you.