News & Reports News Year 2010 November , 2010 Japanese Automaker Mitsubishi to recall 250,000 vehicles

Japanese Automaker Mitsubishi to recall 250,000 vehicles


13november2010-6
Japanese transport ministry says the county's fourth largest carmaker Mitsubishi Motors will recall about 250,000 vehicles domestically over engine oil leaks.
The ministry announced on Thursday the recall of a total of 247,663 units, including seven small models, such as the family-sized eK Wagon. It will also affect 60,873 the Otti and Clipper mini vehicles produced for the Nissan Motor.

The decision comes as a result of a faulty engine part which could trigger an oil leakage and light up the oil pressure gauge on the dashboard.

"Continued use may cause parts inside the engine to burn and the vehicle may cease to operate," Mitsubishi said.

The recall, started on Friday, covers vehicles produced by Japan's fourth-largest automaker from November 2003 through August 2005.

Mitsubishi is not the first Japanese automobile company to recall hundreds of thousands of vehicles in the past few months with Toyota, the world's biggest automaker, setting the pace by recalling around 12 million units over the past year.

Last week, Toyota announced a recall of almost 136,000 compact cars in Japan and Europe to fix a steering problem. It also faced a record 16.4-million-dollar fine over claims it had hidden accelerator pedal defects blamed for dozens of deaths.

In October, Toyota announced a global safety recall of about 1.5 million vehicles over a brake fluid leak feared to gradually diminish braking performance.

Meanwhile, Nissan Motor announced last month that it was recalling more than 2.1 million cars globally due to a faulty engine control system.

The challenges, however, have not managed to affect Japanese automakers' earnings, even given the consequences of a strong currency which makes them less competitive than rivals with cheaper domestic currencies.

Mitsubishi Motors posted a much smaller net loss in the first half to September in comparison with the same period in 2009 owing to greater sales in Asia.

In the same period, recession-hit Toyota got up on its feet and surged back to profit. Nissan also enjoyed a fourfold net profit in the three months to September.