|
|
Change Your Life! |
Mitsubishi to face criminal charges, but some shrug scandal off |
|
News
|
|
|
August 26, 2000
By YURI KAGEYAMA AP Business Writer TOKYO, AUG 25 (UNB/AP) - Mitsubishi Motors Corp. will soon face criminal charges in a massive 20-year cover-up of auto defects, the first time an automaker will be charged for a recall violation in Japan, government officials said Friday. Transportation Minister Hajime Morita said the government and police were in the final stages of preparing charges against Mitsubishi. Since last month, Mitsubishi has been forced to recall 620,000 vehicles for defects, including failing breaks, fuel leaks and malfunctioning clutches. The recalls came only after government inspectors found documents about auto defects hidden in a company locker room. Earlier this week, the automaker submitted to the government its internal investigation that found workers and managers had knowingly and systematically filed away consumer complaints about auto defects. The embarrassing disclosure strikes a stunning contrast with the image of the nearly perfect cars, disciplined autoworkers and technological innovation that has been the pillar of Japanese automakers' reputation both at home and abroad. U.S. federal auto safety officials have also asked Mitsubishi to vouch for the quality of cars it had sold in the United States. About 45,000 of the cars affected by the recent recalls were exported to the United States. Consumer activists say the Japanese government has too little muscle in cracking down on recall violations. If convicted, Mitsubishi Motors will face a fine of up to 1 million yen (dlrs 9,000) per recall and a separate 200,000 yen (dlrs 1,800) fine for filing a false report. Only one other company, Fuji Heavy Industries, has ever been slapped a fine for not reporting a recall. Fuji was reprimanded but never criminally charged. "The issue is not about money. It's about the damage to corporate image," said Transportation Ministry official Fukuya Takase. Still, consumer reaction was muted. Protests against product liability are rare in Japan, boycotts even rarer. Lawsuits common in such cases in the United States are drawn-out painful processes here that most people try to avoid. Tsuyoshi Hiromori, a 28-year-old software salesman who owns two Mitsubishi models, shrugged off the scandal. "It's probably happening at the other automakers," Hiromori said. "I like Mitsubishi's offroad features." Mitsubishi sales have not taken a hit from the cover-up so far. Sales of passenger cars totaled about 12,000 this month, up from 10,800 the same month last year. Mitsubishi Vice President Sumikazu Yokogawa said dealers have been making a special effort to push their cars since the cover-up scandal surfaced. Japanese dealers court personal relations with their clients, often visiting them at home and bringing over new models for test-drives. Some people felt sorry for the dealers and appreciated the extra effort, Yokogawa said. "Japanese consumers still don't fully realize their power," said Hiroko Mizuharu, secretary-general of the grassroots Consumers Union of Japan. "But something is rotten at the core of big companies." |