Mitsubishi offices raided in Germany over suspected diesel emissions fraud

A spokesperson for Mitsubishi Motors in Japan on Wednesday confirmed the raid on its German distributors as well as on its European research and development facilities.

German prosecutors have raided 10 business premises as part of a probe into suspected diesel emissions cheating involving Mitsubishi cars, the latest fallout from the so-called "dieselgate" scandal.

Frankfurt prosecutors said they had opened a fraud investigation against senior employees at "an international car group", two international car suppliers and a car dealership.

The probe focuses on Mitsubishi diesel vehicles with 1.6- and 2.2-litre engines that were given Germany's highest Euro 5 and Euro 6 ratings depending on their adherence to emissions standards.

"There is a suspicion that the engines are equipped with a so-called shutdown device" that makes them appear less polluting in lab tests than they actually are on the road, the prosecutors' statement said.

A spokesperson for Mitsubishi Motors in Japan on Wednesday confirmed the raid on its German distributors as well as on its European research and development facilities -- also based in the country.

"Mitsubishi Motors will of course collaborate and contribute to this investigation," the spokesperson told AFP, declining to offer further information.

On the Tokyo stock exchange, Mitsubishi shares were swamped by selling at the opening bell, delaying an initial price. When the stock was eventually traded, it was down 4.62 percent at 433 yen.

The Mitsubishi probe is the latest twist in the dieselgate scandal that erupted in 2015 when the Volkswagen group admitted to installing software in 11 million vehicles worldwide to dupe pollution tests.

Automobile

Volkswagen has just 'one shot' to survive in the digital era game: CEO

Diess's warning comes as the car industry is grappling with tough new EU emissions rules that came into force in 2020.

International News : Volkswagen needs to make urgent changes to become more of a tech company as the industry enters the digital era, CEO Herbert Diess said Thursday, warning that the German car giant had just "one shot" at staying in the game.

"The time of the classic car manufacturer is over," Diess said in a speech to senior executives, as the industry undergoes "radical transformation" to make cars greener and smarter than ever before.

"Volkswagen's future lies in becoming a digital technology company," Diess said. He singled out US tech firm and electric car pioneer Tesla as an example of the kind of fierce and unorthodox competition the company was up against.

Diess's warning comes as the car industry is grappling with tough new EU emissions rules that came into force in 2020, pushing automakers to accelerate their costly switch to hybrid and electric cars.

At the same time, companies are pouring billions of euros (dollars) into new technologies like self-driving and internet-connected "smart" cars -- just as carmakers are smarting from weaker global demand.

To master the challenges, Diess said the group needed "a shared understanding of the radical nature of the changes" and be prepared to "slaughter holy cows" -- a possible nod to future cost cuts.

"We have exactly one shot at securing our future. Let's use it," he added.

The 12-brand VW group, which includes Porsche, Seat, Skoda and Audi, has set itself the goal of selling 32 million electric and hybrid vehicles by 2029.

The group is investing some 30 billion euros ($33 billion) in electrification over the coming years and is pinning much of its hopes on the "ID.3", VW's first mass-market, all-electric car.

Diess said Volkswagen had to avoid the fate of cult mobile phone maker Nokia, which "went under in the battle against Apple" because it failed to read the sign of the times.

"This exact scenario is repeating itself in the auto industry," he warned.