Led astray by a sea breeze

18 May 2016 By Quentin Webb

Like rival Mitsubishi, the Japanese carmaker has spooked investors by admitting it ran unorthodox mileage tests. By Suzuki’s account, the violations sound less serious. In any case, much of its value is tied up in Indian subsidiary Maruti. That limits the risks to shareholders.

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Suzuki Motor said on May 18 it had used emission and fuel efficiency testing methods that were different from Japanese regulations on 16 models now sold in the country, but that proper testing showed no need to amend the data.

Japan’s fourth-largest automaker said the improper testing method dated back to 2010 and that around 2.1 million vehicles were affected. The discrepancy does not affect any Suzuki-badged vehicles overseas, the company said in a statement.

The announcement comes after Japan’s transport ministry ordered all domestic automakers to investigate their fuel economy testing methods in the wake of revelations that Mitsubishi Motors used methods that did not comply with regulations.

Suzuki’s statement came after the Tokyo market closed. Its shares closed 9.4 percent lower at 2,613 yen, after earlier crashing as much as 15 percent.

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