Risks Associated with Adapting to and Complying with Regulations in Each Country
First written in FY2016. 2 of 5 entries say "Materialised", first in FY2017-Q2. Latest entry: FY2020.
Mitsubishi Motors moved to the "Worse" side of this theme in 2020, 2 years before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 4 of 17 companies on the "Worse" side.
4 other companies' latest entry also says "Materialised".
- FY2020MaterialisedAnnual report
「It is alleged that the engines were equipped with so-called 'defeat devices' intended to make their nitrogen oxide (NOx) emissions comply with regulatory limits only in the chassis dynamometer tests used for certification testing.」
Regarding the risk of adapting to and complying with the laws and regulations of each country, the suspected installation of defeat devices in connection with European emissions regulations and an investigation by German prosecutors became concrete developments. - FY2017MitigatedAnnual report
「An objective and thorough investigation of the facts was conducted by a special investigation committee, and measures to prevent recurrence were formulated and implemented by 1 April 2017.」
Although non-compliance with laws and testing methods relating to fuel-economy testing had already occurred, the completion of the investigation and implementation of recurrence-prevention measures were disclosed, indicating progress in addressing the risk of recurrence. - 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.」
The risk of non-compliance with laws and regulations became more concrete through the Consumer Affairs Agency's corrective action order and surcharge payment order concerning fuel-economy testing misconduct. - FY2017-Q2MaterialisedAnnual report
「It was discovered that misconduct had occurred in fuel-economy testing of vehicles manufactured by the company.」
Non-compliance with laws and regulations and testing methods relating to fuel-economy testing actually occurred, resulting in additional reports to the Ministry of Land, Infrastructure, Transport and Tourism and related losses. - FY2016First statedAnnual report
「If the Group fails to adapt to or comply with these laws and regulations, is subject to sanctions as a result, or incurs substantial costs to adapt to or comply with amended or strengthened regulations, this could have a material impact on the Group's results of operations or financial condition.」
The costs of complying with regulations in each country, including those concerning environmental protection, product safety and fuel-economy testing, as well as sanctions and regulatory action, are identified as risks.