Mitsubishi president, vice president resign in fuel efficiency test scandal

TOKYO, May 18 (UPI) -- The president and vice president of Mitsubishi Motor Corp. announced their resignations Wednesday after the company admitted it falsified fuel economy tests.

Tetsuro Aikawa, Mitsubishi president, and Ryugo Nakao, vice president, will leave their positions on June 24, a company statement said Wednesday.

The fallout from the fraudulent results -- on 13 car models sold in Japan and South Korea -- has imperiled and embarrassed the company, reduced car sales, prompted government investigations, driven down the company's stock price and forced the sale of 34 percent of the company to Nissan Motors Corp. in pursuit of working capital. It also spread to Suzuki Motor, which admitted Wednesday it improperly tested fuel efficiency on 16 of its models; Suzuki stock declined 9.4 percent on Tokyo markets after the admission.

In addition to the resignations, Chairman Osamu Masuko said he will forgo compensation until a new management team is formed. The Mitsubishi statement said management created an environment for fraud, admitting it tested vehicles improperly and overstated the economy ratings of four vehicles.

The revelations come after a prior Mitsubishi coverup, a decade ago, of defective axles which caused wheels to detach in accidents. Aikawa and Nakao were tasked with reversing Mitsubishi's reputation. Government investigators are examining Mitsubishi's improper fuel efficiency testing, which the company admits dates to 1991. A report is expected by July.