Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

German prosecutors probe Mitsubishi for suspected illegal defeat devices

Published 01/21/2020, 12:23 PM
Updated 01/21/2020, 12:23 PM
© Reuters. 89th Geneva International Motor Show in Geneva

FRANKFURT (Reuters) - Japanese carmaker Mitsubishi is being probed by German prosecutors for suspected use of illegal defeat devices installed in its diesel engines, the Frankfurt prosecutor's office said on Tuesday.

The Japanese carmaker is the latest manufacturer to be investigated on suspicion of hiding illegal levels of pollution following a regulatory clampdown on toxic fumes triggered by Volkswagen's 2015 admission that it had cheated emissions tests.

Carmakers used engine management software to detect when a car was undergoing an emissions test cycle, and throttled back toxic fumes to hide the vehicle's real-world pollution levels.

The prosecutor's office said in a statement that officials are investigating a member of staff at an international carmaker for fraud, as well as a unit of an international car dealership company, and two auto suppliers.

In a statement, Mitsubishi Motors said it had been informed about an investigation of its German distributor as well as of its European R&D facilities, also based in Germany, by local authorities.

"No further information is available at that stage. Mitsubishi Motors will of course collaborate and contribute to this investigation," the carmaker said.

Cars made by the company equipped with 1.6 liter and 2.2 liter four-cylinder diesel engines are being investigated over the possible use of an illegal defeat device, the prosecutor's office said.

Premises have been searched in Frankfurt, Hanover and Regensburg in Germany as part of the probe, it added.

German auto supplier Continental said it is a cooperating witness in the probe. Automotive supplier Bosch said it was not involved.

Bosch (ROBG.UL) last year agreed to pay a 90 million euro ($100.21 million) fine for lapses in supervisory duties which enabled carmakers to engage in emissions cheating.

Following Volkswagen's 2015 admission that it had rigged engine software with "defeat devices" to cheat U.S. diesel tests, several European states launched investigations.

They found on-the-road nitrogen oxide (NOx) emissions more than 10 times above regulatory limits for some Opel, Renault (PA:RENA) and Fiat Chrysler models, and widespread use of devices that reduce or shut down exhaust treatment during normal use.

© Reuters. 89th Geneva International Motor Show in Geneva

French prosecutors opened criminal probes into Volkswagen (DE:VOWG_p), Renault, PSA Group and Fiat Chrysler in 2016-17 that remain ongoing.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.