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Mitsubishi Motors Corp's (7211.T) shares were untraded on Thursday as they were swamped with sell orders, and were poised to hit a record low after the Japanese automaker admitted to manipulating fuel-economy data.
Japan's sixth-biggest automaker said on Wednesday it had manipulated test data to overstate the fuel economy of 625,000 cars, a situation the government called "extremely serious".
Mitsubishi Motors had said it stopped making and selling its eK mini-wagons for the domestic market after Nissan Motor Co (7201.T), which markets a similar model made by Mitsubishi Motors, found a discrepancy in fuel efficiency test data.
JPMorgan auto analyst Akira Kishimoto estimated the cheating could cost Mitsubishi more than 50 billion yen ($450 million), including payments to consumers, the costs of replacing parts, and compensation to Nissan.
And while Mitsubishi said the cars were sold only in Japan, the impact could be felt wider.
Revelations of the cheating follow a cover-up scandal that brought Mitsubishi close to the brink about a decade ago, when the automaker admitted to systematically concealing defects over decades. It was Japan's worst automotive recall scandal at the time.
"This undermines consumers' trust and it shouldn't have happened. It is an extremely serious case," Chief Cabinet Secretary Yoshihide Suga, the government's top spokesman, told a news conference.
"We want the whole picture of the misconduct clarified as soon as possible, and want a strict response and the safety of automobiles to be ensured," he said.
Mitsubishi Motors shares set to slump to record low on mileage cheating scandal| Reuters
