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Mitsubishi Motors Concludes Extended Investigation into Past Quality Issues, Announces Post-Market Measures

Tokyo, September 28, 2004  — Mitsubishi Motors offers its sincere apologies for the disruptions it has caused as a result of its past quality issues.

Concerning the extended investigation into past quality problems which was reported on August 26th, with guidance from the Ministry of Land, Infrastructure and Transport on the subject of post-market measures, today, we will announce 6 cases requiring post market measures.

After June 2nd of this year, with regard to past repair directives, all possible sources of information were gathered and analyzed, and all cases until the present day that required post-market measures have been issued.

Following this investigation, the company will take efforts to promote the implementation of post-market measures as well as to determine the causes of these problems and the establishment of systems to prevent their future occurrence.

Regarding the announcement of post-market measures

Collecting the product information reports stored within the company and at dealers required the work of some 4,000 employees for all departments, working for three months. The investigations traced documents back 25 years, to 1979.

Extended investigation findings

Among the items that were analyzed, 224 unresolved repair directives were found. Among the 134,000 product information reports, within the total of 224 cases, there were no reports of accidents, fires, or injuries. The details of these 224 cases are as follows:

1.  Cases subject to post-market measures
(i.e., recall or improvement measures)
85 cases
    2.  Cases related to merchantability 108 cases
3.  Cases covered by previous post-market measures 31 cases

In cases where there is a possibility for the application of post-market measures (recall or improvement measures) the following statements are judged: Was the found and repaired during a routine vehicle inspection? Or, taking into account the mileage and age of a given item, is there a possibility that there will be a failure later on? Furthermore, the following assumptions were made, based on in-house data regarding existing vehicles:

    -  Average mileage for Mitsubishi cars  (1,000 km/month)
Low-usage vehicles (200 km/month)

Investigation results

For cases deemed to require post market measures, the 85 items that are subject to either recall or improvement measures have been divided into 5 categories, with category one comprising six separate cases that require measures to be taken, as shown below:

Category 1:  Number of cases requiring post market measures — 6 cases
Cases that were overlooked in previous recall issuances: 1 case
Cases the bulk of which were already judged to have been defective, but where the possibility of another defect may arise within a few years' time: 5 cases
Category 2:  Early occurring defects (i.e., 20,000 km or within 2 years) which have been corrected. These items were dealt with during routine car inspections — 41 cases
Category 3:  Defects where there is no possibility of occurrence, even after several years. These cases were dealt with during routine car inspections — 9 cases
Category 4:  Early occurring defects (i.e., 20,000 km or within 2 years) that have been corrected — 26 cases
Category 5:  Miscellaneous — 3 cases
Items where the defect was re-inspected and where it was verified that the defect will not occur again under normal use — 1 case
Items where the defect was re-inspected and it was verified that no damage occurred, contrary to expectations — 1 case
Items where the defect was re-inspected and it was verified that there would be no gradual progress of further damage — 1 case

The plan for recall and post-market measures

The rate of implementation of post market measures for vehicles subject to recall by the announcement made on July 29, through to September 27, is 35.1%.

With regard to past repair directives, because affected vehicles tend to be late models, the ratio of vehicles that can be handled directly by dealers for customers is low, meanwhile the ratio of unregistered vehicles being high, there is a delay to the number of cases that can be treated, the following measures will be undertaken to improve the response time. In particular, 1) 1997 model years of Galant and Legnum; airbag exchange (notice issued 6/4) and 2) 1992 model years of Libero; tailgate stopper exchange (notice issued 7/2); these cases will be given priority, owing to the seriousness of their needs.

Publicizing of recalls and requests for cooperation

Detailed recall information will be supplied on our corporate web site, the customer support center's hours will be extended, newspaper adverts will be run explaining vehicles affected by recalls and segments will be run on television to further inform the public.

For customers who are in contact with their dealers, a plan to have them bring in their vehicles is being put into effect. For customers who have not yet been informed, a direct mail campaign will be launched at the beginning of October.

For customers who are not in contact with their dealers, customer data will be confirmed and a plan to have them bring in their vehicles will be put into effect. In addition, customers who have not yet brought in their vehicles for recall work will be contacted by direct mail or telephone. In cases where owners cannot be contacted, we will cooperate with the Ministry of Land, Infrastructure and Transport to see that recall information is made available during routine car inspections.

For owners of unregistered vehicles, it is expected that the bulk of such vehicles are in the possession of used-vehicles sellers. We will announce in specialty trade magazines the creation of a recall search function on our corporate web site to assist these owners.

Today's notices concerning past repair directives requiring post-market measures marks the final notification. With regard to the series of quality problems, we will gather more information with each case and conclude the matter with appropriate measures.