Product Quality, Safety and Recall Risks
First written in FY2016. 3 of 10 entries say "Materialised", first in FY2017-Q1. Latest entry: 2026-10-07.
Mitsubishi Motors moved to the "Worse" side of this theme in 2016, 7 years before the typical company in this theme (2023).
The whole theme swung hardest in 2025: 13 of 35 companies on the "Worse" side.
13 other companies' latest entry also says "Mitigated".
- 2026-10-07MitigatedOccurring FactSuggests it is closing out
「We hereby announce that a settlement was reached in this lawsuit and that the litigation concluded on 6 October 2026 (US local time). The settlement does not constitute an admission of the plaintiffs’ claims or of liability on the part of the company or MMNA.」
The lawsuit against MMNA concluded through a settlement, reducing the risk of ongoing legal proceedings related to the product liability litigation. The disclosure expressly states that the settlement does not constitute an admission of the plaintiffs’ claims or liability on the part of the company or MMNA. - FY2026MitigatedAnnual report
「On 28 May 2024 (US local time), MMNA appealed the judgment to the Superior Court of Pennsylvania, and on 22 December 2025 (US local time), a judgment was issued vacating and remanding the trial-court judgment.」
Regarding the US product-liability lawsuit, the appellate court issued a decision vacating and remanding the trial-court judgment, following the US$1,010 million trial-court judgment. - FY2025-H1RestatedAnnual report
「In a product-liability lawsuit before the Court of Common Pleas of Philadelphia County, Pennsylvania, filed in November 2018, a judgment dated 6 May 2024 (US local time) was issued ordering our subsidiary Mitsubishi Motors North America, Inc. (MMNA) to pay US$1,010 million in damages. On 28 May 2024 (US local time), MMNA appealed the judgment to the Superior Court of Pennsylvania.」
With respect to the product-liability lawsuit, the US$1,010 million judgment and MMNA's appeal continued to be disclosed. - FY2024WorsenedAnnual report
「In a product-liability lawsuit before the Court of Common Pleas of Philadelphia County, Pennsylvania, filed in November 2018, a judgment dated 6 May 2024 (US local time) was issued ordering our subsidiary Mitsubishi Motors North America, Inc. (MMNA) to pay US$1,010 million in damages.」
The matter progressed from the jury verdict described in the previous fiscal year to a damages judgment against MMNA. The amount was US$1,010 million, and an appeal had been filed. - FY2024-Q2MaterialisedAnnual report
「On 30 October 2023, in a product-liability lawsuit before the Court of Common Pleas of Philadelphia County, Pennsylvania, a jury returned a verdict ordering our subsidiary Mitsubishi Motors North America, Inc. (MMNA) to pay US$976 million in damages.」
The product-liability risk materialized in the form of a US$976 million damages verdict against MMNA. As of the filing date, no judgment had yet been issued, and planned legal action, including an appeal, was also described. - FY2020MaterialisedAnnual report
「On 21 January 2020, Mitsubishi Motors R&D Europe GmbH, our research and development facility in Germany, and MMD Automobile GmbH, our sales facility there, were subject to an on-site inspection by the Frankfurt Public Prosecutor's Office in Germany, referred to below as the "Inspection."」
With respect to product quality and regulatory compliance risks, an on-site inspection by German prosecutors actually took place in relation to compliance with emissions regulations for diesel engines in Europe. - FY2017-Q3WorsenedAnnual report
「In addition, on 27 January 2017, we received an administrative order and an order to pay an administrative fine from the Consumer Affairs Agency under the Act against Unjustifiable Premiums and Misleading Representations. We take this matter seriously and will respond promptly.」
Additional administrative measures arose in relation to quality and labeling issues connected with fuel-economy test irregularities, in the form of an administrative order and an order to pay an administrative fine from the Consumer Affairs Agency. - FY2017-Q2WorsenedAnnual report
「As a result of recording a ¥166.2 billion extraordinary loss related to fuel-economy testing and other factors, the figure was a loss of ¥219.6 billion, down ¥271.7 billion year on year.」
Costs related to quality and regulatory compliance arising from fuel-economy test irregularities were recorded as a ¥166.2 billion extraordinary loss, increasing the financial impact of the quality and safety risks that had already materialized. - FY2017-Q1MaterialisedAnnual report
「As a result of recording a ¥125.9 billion extraordinary loss related to fuel-economy testing and other factors, the figure was a loss of ¥129.7 billion, down ¥153.7 billion year on year.」
Costs related to quality and regulatory compliance actually arose through the recording of a ¥125.9 billion loss related to fuel-economy testing. - FY2016First statedAnnual report
「Despite the Group's efforts to improve product quality and ensure safety, if recalls or remedial measures arising from product defects or malfunctions become extensive, or if the Group faces extensive product-liability claims, this could have a material impact on the Group's operating results or financial position through significant costs, a decline in the reputation of and demand for its products, and other effects.」
In addition to general quality and safety risks, the disclosure describes compensation and damages related to fuel-economy test irregularities and the potential for lower product evaluations and demand.