Business and reputational risks arising from fuel-efficiency test misconduct
First written in FY2016. 13 of 17 entries say "Mitigated", first in FY2018-Q1. Latest entry: FY2022-Q3.
The whole theme swung hardest in 2025: 3 of 7 companies on the "Worse" side.
6 other companies' latest entry also says "Mitigated".
- FY2022-Q3MitigatedAnnual report
「Provision for losses related to fuel-economy tests 1,066 631」
The provision for losses related to the fuel-economy tests decreased from ¥1.066 billion at the end of the previous fiscal year to ¥631 million at the end of December 2021, further reducing the remaining financial impact. - FY2022-Q1MitigatedAnnual report
「Provision for losses related to fuel-economy tests 1,066 802」
The provision for losses related to the fuel-economy tests decreased from ¥1.066 billion at the end of March 2021 to ¥802 million at the end of June 2021, reducing the remaining financial impact. - FY2021-Q2MitigatedAnnual report
「Provision for losses related to fuel-economy tests 2,304 1,614」
The provision for losses related to the fuel-economy tests decreased from ¥2.304 billion at the end of the previous fiscal year to ¥1.614 billion at the end of September 2020, reducing the remaining financial impact. - FY2020MitigatedAnnual report
「Provision for losses related to fuel-economy tests 3,758 2,304」
The provision for losses related to the fuel-economy tests decreased from ¥3.758 billion at the end of the previous fiscal year to ¥2.304 billion, further reducing the remaining financial impact. - FY2020-Q3MitigatedAnnual report
「Provision for losses related to fuel-economy tests 3,758 2,507」
The provision for losses related to the fuel-economy tests decreased from ¥3.758 billion at the end of March 2019 to ¥2.507 billion at the end of December 2019, further reducing the remaining financial impact. - FY2020-Q2MitigatedAnnual report
「Provision for losses related to fuel-economy tests 3,758 2,879」
The provision for losses related to the fuel-economy tests decreased from ¥3.758 billion at the end of March 2019 to ¥2.879 billion at the end of September 2019, further reducing the remaining financial impact. - FY2020-Q1MitigatedAnnual report
「Provision for losses related to fuel-economy tests 3,758 3,289」
The provision for losses related to the fuel-economy tests decreased from ¥3.758 billion at the end of March 2019 to ¥3.289 billion at the end of June 2019. - FY2019MitigatedAnnual report
「Reversal of provision for losses related to fuel-economy tests 2,922」
No losses related to the fuel-economy tests were recorded in the current fiscal year, while a reversal of provision of ¥2.922 billion was recorded. The balance of the provision for such losses also decreased from ¥15.478 billion at the end of the previous fiscal year to ¥3.758 billion, and related payments also declined. - FY2019-Q2MitigatedAnnual report
「Net cash provided by operating activities was ¥29.2 billion, an increase of ¥27.6 billion from the ¥1.6 billion provided in the same cumulative period of the previous year. This was mainly due to a greater decrease in trade receivables, a smaller increase in inventories, and lower payments related to the fuel-economy tests.」
Payments related to the fuel-economy tests decreased from ¥13.942 billion in the same period of the previous year to ¥657 million, indicating a reduction in cash outflows associated with the fuel-economy test misconduct. - FY2018MitigatedAnnual report
「Losses related to fuel-economy tests ¥2.262 billion」
Losses related to the fuel-economy tests fell sharply from ¥165.455 billion in the previous fiscal year to ¥2.262 billion, while the provision for such losses also decreased from ¥28.136 billion to ¥15.478 billion. The financial impact of the issue remains, but both recognized losses and the provision balance have declined. - FY2018-Q3MitigatedAnnual report
「Losses related to fuel-economy tests -」
No losses related to the fuel-economy tests were recorded in the cumulative third quarter of the current fiscal year, and the provision for such losses decreased from ¥28.136 billion at the end of the previous fiscal year to ¥14.403 billion. - FY2018-Q2MitigatedAnnual report
「Losses related to fuel-economy tests -」
No losses related to the fuel-economy tests were recorded in the cumulative second quarter of the current fiscal year, and the provision for such losses decreased from ¥28.136 billion at the end of the previous fiscal year to ¥15.853 billion. However, a provision balance remains. - FY2018-Q1MitigatedAnnual report
「In Japan, sales recovered to the level before the fuel-economy misconduct issue, reaching 19 thousand units, up 90% year on year.」
Regarding the impact of the fuel-economy misconduct on sales, sales in Japan recovered to the level before the misconduct came to light. However, the provision for losses related to the fuel-economy tests remained at ¥1.8261 billion at the end of the quarter. - FY2017RestatedAnnual report
「With respect to the misconduct in fuel-economy tests for the Company's vehicles, which came to light in April 2016, the Company recorded extraordinary losses of ¥165.5 billion on a consolidated basis and ¥167.2 billion on a non-consolidated basis. The matter had a material impact on the operating results and financial position of the Group, including effects on sales of the Company's products.」
The impact on sales and the extraordinary losses resulting from the fuel-economy test misconduct were reported in the full-year results, confirming the issue's impact on earnings and financial results. - FY2017-Q2WorsenedAnnual report
「Profit attributable to owners of the parent was a loss of ¥219.6 billion, down ¥271.7 billion year on year, mainly because the Company recorded an extraordinary loss of ¥166.2 billion related to the fuel-economy tests.」
The financial impact of the fuel-economy test misconduct expanded from the ¥125.9 billion recorded in the first quarter to cumulative extraordinary losses of ¥166.2 billion, further quantifying its impact on earnings and financial results. - FY2017-Q1MaterialisedAnnual report
「Operating profit was ¥4.6 billion, down ¥14.0 billion year on year, or 75%, due mainly to the negative impact of suspending production and sales of mini vehicles in Japan as a result of the fuel-economy misconduct issue, as well as higher costs for market measures. Profit attributable to owners of the parent was a loss of ¥129.7 billion, down ¥153.7 billion year on year, mainly because the Company recorded an extraordinary loss of ¥125.9 billion related to the fuel-economy tests.」
The impact of the fuel-economy test misconduct appeared in actual earnings and financial results as lower profit due to the suspension of mini-vehicle production and sales and an extraordinary loss of ¥125.9 billion. - FY2016First statedAnnual report
「The Company disclosed that improper procedures had been used in the fuel-economy test data submitted to the Ministry of Land, Infrastructure, Transport and Tourism for type certification of the Company's mini vehicles, in order to make fuel economy appear better than it actually was, and that testing methods different from those prescribed by domestic laws and regulations had been used.」
The fuel-economy test misconduct actually occurred, and its effects on the Company's reputation, business operations and finances have become concrete, including sales of 157 thousand units across 4 models, production of 468 thousand units for NISSAN MOTOR CO.,LTD., and an expected extraordinary loss of approximately ¥150 billion in the following fiscal year.