Suzuki shares fall on back of fuel test issue

Suzuki said it had used improper fuel economy tests for its cars in Japan, in a widening of a scandal that has engulfed Mitsubishi Motors , but it asserted that proper testing had shown the data did not need to be amended.

The news follows Mitsubishi’s admission of fuel economy manipulation last month, after which Japan’s transport ministry asked domestic automakers to re-submit fuel economy readings on all their vehicles by Wednesday.

Japan's fourth-largest car maker said 2.1 million vehicles were affected but chief executive Osamu Suzuki tsaid that his workers did not intentionally use improper data.

“The company apologises for the fact that we did not follow rules set by the country,” he said. Shares in Suzuki ended down 9.4 per cent after the company said it had used improper tests but before it briefed media. At one point they fell as much as 15 per cent to their lowest level since November 2013.

Suzuki specialises in minivehicles, which have engines of up to 660cc and get preferential tax treatment under Japanese law. It commands roughly one-third of the country’s minivehicle market.

The car maker said it plans to continue sales of its cars given that new readings had not deviated much from those previously submitted, adding that it did not see much impact on earnings for now.

- Reuters