German Investigators Raid Mitsubishi Offices

The raids are part of an ongoing investigation into major automotive companies suspected of committing emissions fraud. (Wikipedia Commons)

German authorities raided Mitsubishi offices as part of an ongoing investigation into diesel emissions and diesel engines on January 21. According to France 24, a Mitsubishi spokesperson said that while the raids occurred primarily on its German distributors, there have also been raids on the company’s other European research and development facilities based in Germany. These raids come just weeks after Mitsubishi announced that it was halting its diesel engine development and phasing out its current diesel cars.

Authorities allege that the Japanese automotive company has installed illegal emissions-management software in diesel-powered cars across Germany. Prosecutors say that “there is a suspicion that the engines are equipped with a so-called shutdown device,” meaning that during lab tests and examinations, Mitsubishi engines appear to pollute less than they actually do on the road. These fraudulent test results are the German authorities’ main concern.

The raids are part of an ongoing investigation into major automotive companies suspected of committing emissions fraud. In December, German investigators raided Volkswagen’s headquarters. Furthermore, Volkswagen was found guilty of emissions cheating in 2015, costing the company more than €30 billion ($33 billion) in fines, vehicle refits, and legal charges. Some other automobile companies implicated in this diesel-emissions scandal are BMW, Daimler, and Fiat-Chrysler.

Police in Frankfurt have confirmed that their main area of investigation is cars with a 1.6 or 2.2-liter four-cylinder diesel engine. Authorities allege that the engines can meet Euro 5 and Euro 6 emission standards during checks but not in actual road conditions. Ultimately, Mitsubishi has said that they are willing to cooperate with German authorities as investigations continue. According to the Wall Street Journal, Daniel Narcass, a spokesman for Mitsubishi Motors Europe, said they “are just learning about the whole thing now” and  “still aren’t sure what this is all about.”

However, the consequences of such an investigation of Mitsubishi are large. The Nissan-Renault-Mitsubishi alliance, which is focused on developing environmentally friendly electric vehicles, will likely face trouble. With such a wide-scale crackdown on diesel engines involving many other prominent automobile companies, the share of diesel vehicle sales is projected to drop around 30 percent of all sales in 2020, a sharp decrease from a high of 55 percent in 2011. According to France 24, Mitsubishi’s shares have dropped 4.62 percent on the Tokyo stock exchange since the raids were reported. It is clear that this investigation will only continue to harm the automobile industry.