Mitsubishi Motors sees annual net loss due to mileage scandal

Mitsubishi Motors Corp (7211.T) expects to post a net loss for the current financial year over its mileage cheating scandal, Kyodo news agency reported on Tuesday.

Compensation paid to owners of cars affected by the scandal and a fall in domestic vehicle sales is set to hit the automaker’s bottom line, Kyodo said without citing sources.

Mitsubishi declined to comment on the report.

The automaker said last week it planned to give owners of four minivehicles close to $1,000 in compensation for its overstating of mileage readings, part of reimbursement costs that will total at least $600 million.

Source: Reuters