Mitsubishi boss says sorry for cover-up crisis
The chief executive at scandal-plagued Japanese vehicle maker Mitsubishi Motors apologised to shareholders today for repeated recall cover-ups and plunging sales.
Bowing deeply, Mitsubishi Motors Chief Executive Yoichiro Okazaki told investors at a shareholders’ meeting in Tokyo: “I sincerely apologise. Our business remains in serious trouble. But we will do our utmost to carry out our revival plan.”
But angry investors hurled question after question about the cover-ups, demanding that executives do more to make up for wrongdoing and prevent a recurrence.
The Tokyo-based company’s image has been battered since disclosing earlier this year that it had not kept its promise four years ago to stop hiding car defects. For decades, the vehicle maker had systematically covered up defects to avoid the costs of carrying out recalls.
Former and current Mitsubishi officials have been arrested on charges of professional negligence resulting in death and other offences in two fatal accidents in 2002 involving Mitsubishi lorries in which wheel and clutch-system defects are suspected.
Police say officials failed to follow orders from authorities to report defects even after they promised to stop the cover-ups. Mitsubishi Fuso Truck and Bus Corporation was spun off last year, but it was previously under the management of Mitsubishi Motors.
At today’s meeting, shareholders demanded the company get to the bottom of the cover-ups. One investor demanded that Okazaki invest his fortune in Mitsubishi Motors stocks to show his commitment. Another began yelling uncontrollably at Okazaki and had to be subdued.
Okazaki promised the company will strengthen quality control, bring in outsiders to monitor corporate ethics and promote social responsibility.
Sales of Mitsubishi cars have plunged, and governments and other public bodies are suspending the order of Mitsubishi buses and other vehicles. Thousands of vehicles have been recalled for dozens of defects, many of them capable of causing serious accidents.
Police are investigating recent fires and accidents involving Mitsubishi trucks that have been recalled but are still on Japanese streets.
Mitsubishi has reported a loss for the year ended March 31 and expects to stay in the red this year.
