Mitsubishi Motors set to pay 625,000 car buyers $1,000 USD

Mitsubishi Motors plans to pay 100,000 yen ($956) to every customer affected by the automaker’s emissions fraud, sources said Friday.

The money will be to cover any extra costs, such as those for gasoline, incurred by owners of four models whose fuel-efficiency numbers were manipulated by the company.

Any increase in taxes as a result of the fraud will be paid separately by Mitsubishi Motors.

The carmaker hopes the payouts will end the trouble its dealerships have encountered since the scandal broke out.

The four models are the eK Wagon, eK Space, Dayz and Dayz Roox. The latter two are sold by Nissan Motor. A total of 625,000 units of the affected models have been sold.

The payouts would total an estimated 62.5 billion yen. Part of that has already been treated as an extrordinary loss for the fiscal year ended March, and the remainder will be included in the books for the current fiscal year.

The payouts would also be intended to cover the difference between what owners of the affected vehicles paid for the automobile weight tax when they brought their cars in for compulsory inspection, and what they would have paid had the emissions data been accurate. The company plans to work out the details with Mitsubishi and Nissan dealerships with an eye toward compensating customers around this summer.

For people who are leasing the affected cars, the payout amout will be based on the length of the lease contract. Extra tax costs incurred as a result of the fraud, including the acquisition tax, will be paid by the company to the central government or local authorities on the customers’ behalf.

According to data obtained through Mitsubishi Motors’ internal probe, the actual fuel efficiency of the four models was about 5-15% lower than that advertised by the company. The transport ministry is also conducting its own test of the vehicles and is expected to release a report by the end of the month.

The carmaker plans to finalize the compensation amount based on data provided by the ministry.

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