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Old 18th May 2016, 11:51   #1
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Default Suzuki gets mired in the Fuel-Efficiency scandal

Suzuki gets mired in fuel efficiency scandal- improper method to test the fuel efficiency of its vehicles in Japan..

Post the Mitsubishi revelation, Japan's transport ministry had asked companies to conduct internal investigations and Suzuki is the first one to come out.

Toyota Motor Corp., Nissan Motor Co., Honda Motor Co., Mazda Motor Corp., Daihatsu and Fuji Heavy Industries Ltd.’s Subaru said they found no issues with fuel tests.

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Suzuki Motor, the Japanese automaker, has accepted that it used an improper method to test the fuel efficiency of its vehicles. This could have a telling impact on Suzuki's India operations as nearly half of the Suzuki's sales happen in India.
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Suzuki Motor, will report the issue to Japan's transport ministry on Wednesday. The company hasn't found a flaw affecting the fuel efficiency of Suzuki vehicles
Car makers in spotlight sofar on fuel scandal,

Volkswagen has admitted to cheating emissions tests in the US by installing a cheating software in its diesel vehicles that could detect when the cars were being tested and would change carbon dioxide emission levels accordingly to improve the results.

Mitsubishi Motors has admitted it had falsified fuel economy data for the past 25 years. The car maker was able to advertise its vehicles as being more fuel efficient than they actually were.

Nissan has been accused of having some of its UK-built Qashqais fitted with so-called emissions defeat devices.



http://www.bloomberg.com/news/articl...pan-government

Last edited by volkman10 : 18th May 2016 at 12:16.
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Old 18th May 2016, 11:58   #2
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Originally Posted by volkman10 View Post
Suzuki gets mired in the emission scandal; could impact India operations.
Expect Maruti Suzuki to release a statement soon - The improper method used is in the international context where good fuel is available. We comply to Indian standards of poor quality fuel and exceed in extracting every single kilometer from it by making our cars as light and unsafe as possible. We place utmost importance on fuel efficiency of our vehicles and the patronage we enjoy is a testament to our standards. And all will be back to business as usual.

Jokes apart, Suzuki might be eternally thankful to Maruti in this scenario. If there is anything that can help them survive this, it's Maruti and the huge market they enjoy in India.

Remember Mitsubishi crumbled just a few days ago in a similar scandal. Maruti forms more than half of Suzuki and might just help them remain unfazed through this trying episode.

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Old 18th May 2016, 12:22   #3
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Default Re: Mitsubishi admits to faking fuel economy data

Following Mitsubushi, it is Suzuki this time.

"Suzuki Motor Corp (7269.T) said it had used improper fuel economy testing methods, sending its shares tumbling as a mileage cheating scandal in Japan that has engulfed Mitsubishi Motors Corp (7211.T) widened.

Suzuki Chairman Osamu Suzuki will brief the media at 4 p.m. in Tokyo (0700 GMT)."


http://www.bbc.com/news/business-36319144

http://www.reuters.com/article/us-mi...-idUSKCN0Y90AK
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Old 18th May 2016, 14:25   #4
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Default re: Suzuki gets mired in the Fuel-Efficiency scandal

Suzuki issues a statement on the fuel efficiency investigation

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As the outcome of our internal investigation, acts of injustice, such as manipulation of fuel efficiency data were not found. Meanwhile, some discrepancies were found in the automobile emission and fuel efficiency testing process between the regulation by MLIT and the actual method carried out by Suzuki and therefore Suzuki herewith reports on the issue as follows.
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Sourcing - Global Suzuki

Last edited by volkman10 : 18th May 2016 at 14:46.
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Old 18th May 2016, 15:43   #5
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Default re: Suzuki gets mired in the Fuel-Efficiency scandal

Suzuki Shares Dive After It Admits It Too Used Improper Fuel Economy Tests.

Suzuki Motor said it had used improper fuel economy tests for its cars in Japan, in a widening of a scandal that has engulfed Mitsubishi Motors, but it asserted that proper testing had shown the data did not need to be amended.

The news follows Mitsubishi’s admission of fuel economy manipulation last month, after which Japan’s transport ministry asked domestic automakers to re-submit fuel economy readings on all their vehicles by Wednesday.

Japan’s fourth-largest automaker said 2.1 million vehicles were affected but Chief Executive Osamu Suzuki told reporters that his workers did not intentionally use improper data.

“The company apologizes for the fact that we did not follow rules set by the country,” he said.

Shares in Suzuki SZKMY -3.48% ended down 9.4% after the company said it had used improper tests but before it briefed media. At one point they fell as much as 15% to their lowest level since November 2013.

Suzuki specializes in minivehicles, which have engines of up to 660cc and get preferential tax treatment under Japanese law. It commands roughly one-third of the country’s minivehicle market.

The automaker said it plans to continue sales of its cars given that new readings had not deviated much from those previously submitted, adding that it did not see much impact on earnings for now.

Article: http://fortune.com/2016/05/18/suzuki...economy-tests/

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Originally Posted by CrAzY dRiVeR View Post

Jokes apart, Suzuki might be eternally thankful to Maruti in this scenario. If there is anything that can help them survive this, it's Maruti and the huge market they enjoy in India.
Guess, now Suzuki will have to Pay Royalty to Maruti (in Yen).

Folks at Maruti are having a bad week, first the Global NCAP crash tests results and now this

Last edited by SnS_12 : 18th May 2016 at 15:48.
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Old 18th May 2016, 17:14   #6
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Default re: Suzuki gets mired in the Fuel-Efficiency scandal

Maruti says Suzuki’s faulty fuel test may not affect Indian market.

Shares of the Maruti Suzuki India Ltd tumbled by 4% on Wednesday, as shares of parent Suzuki tumbled 15%, following Suzuki Motor Corporation (SMC) chairman Osamu Suzuki’s confession that the Japanese carmaker made inflated claims of fuel efficiency. At the time of writing this article, there had been no official announcement from Maruti. However, a Suzuki statement issued in Japan sought to exonerate Maruti and all of its other overseas arms.

Source : Hindustan Times
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Old 18th May 2016, 20:55   #7
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Default Re: Suzuki gets mired in the Fuel-Efficiency scandal

Suzuki has also owned up to using improper fuel-efficiency testing methods. 16 of the carmaker's models on sale in Japan have come under scrutiny for improper fuel-efficiency claims, which include cars like the WagonR, Baleno, S-cross and Swift. Suzuki states that this impacts the cars sold in Japan only and not Suzuki’s overseas markets.

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Discrepancies were found in Suzuki’s emission and fuel-efficiency road testing methods versus those prescribed by the Ministry of Land, Infrastructure, Transport and Tourism, Japan. Suzuki also claims that post re-testing, it did not see a signification variation from the earlier figures with the values remaining within the range of measurement deviation
The issue is likely to have little bearing in India as mileage data disclosed for our market is not the manufacturer claimed figure but efficiency as certified by ARAI after conducting laboratory tests set to a prescribed Indian driving cycle.


http://www.autocarindia.com/auto-new...re-401972.aspx
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Old 19th May 2016, 10:50   #8
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Default Re: Suzuki gets mired in the Fuel-Efficiency scandal

Oh boy this reminds of what I wrote somewhere else about leaders, celebrities, organizations: You are criminal only when you are found, till then you are a decorated hero.

Last edited by GTO : 19th May 2016 at 12:49. Reason: Typos
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Old 19th May 2016, 14:02   #9
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Default Re: Suzuki gets mired in the Fuel-Efficiency scandal

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Originally Posted by CrAzY dRiVeR View Post
Expect Maruti Suzuki to release a statement soon
They don't need to. In India, as we know, it is ARAI / other government agencies that conduct the testing. In-house testing isn't considered for reported numbers in India.

Therefore, however Suzuki cheated in Japan is inapplicable to Maruti-Suzuki. This is different from the VW emissions scam where the software cheat might exist on engines sold here.
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Old 19th May 2016, 19:17   #10
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Default Re: Suzuki gets mired in the Fuel-Efficiency scandal

Is there anyone who is not cheating? Mitsubishi, Volkswagon now Suzuki. If is only time before more mess spills out. Coming to think of it, how unfair it is for governments to target the public for the environmental mess when they themselves cannot ensure fair manufacturing practices and subsequent audits. Then there are odd evens, cess', taxes burdening the consumer whereas the fault lies somewhere else.
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Old 19th May 2016, 19:45   #11
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Default Re: Suzuki gets mired in the Fuel-Efficiency scandal

With the stock crash Suzuki is valued at around 12 billion dollars - out of which around 7 billion is due to their 50% holding in Maruti. So Suzuki Motor Corp can be had by the Govt. of India for just 5 billion dollars!
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Old 19th May 2016, 19:51   #12
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With the stock crash Suzuki is valued at around 12 billion dollars - out of which around 7 billion is due to their 50% holding in Maruti. So Suzuki Motor Corp can be had by the Govt. of India for just 5 billion dollars!
Government does not have any share in Maruti Suzuki anymore.

Secondly, Maruti in itself is powerful enough to do the job. But as Suzuki is the controlling stakeholder in Maruti Suzuki, why would they do it?

As I said earlier, the 7 billion from Maruti Suzuki will turn out to be critical for Suzuki to overcome this scandal. As Maruti will remain stable over this period.

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Old 20th May 2016, 15:13   #13
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Default Re: Suzuki gets mired in the Fuel-Efficiency scandal

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Originally Posted by CrAzY dRiVeR View Post
We comply to Indian standards of poor quality fuel and exceed in extracting every single kilometer from it by making our cars as light and unsafe as possible. We place utmost importance on fuel efficiency of our vehicles and the patronage we enjoy is a testament to our standards. [/i]And all will be back to business as usual.
LOL. MAAROTI. Thank you for very nicely summing up the largest car manufacturer of India.
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Old 31st May 2016, 12:41   #14
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Default Re: Suzuki gets mired in the Fuel-Efficiency scandal

Suzuki's Chairman Osamu Suzuki speaks on the fuel economy issue,

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The way of calculating mileage (varies) in different countries... so there is not really a universal method for all over the world
Suzuki Motor had stated that it had used the wrong methods to test the fuel economy of its cars in Japan, but claimed that these didn't make the final results very different.

http://auto.economictimes.indiatimes...onomy/52516786

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Old 31st May 2016, 16:41   #15
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Default Re: Suzuki gets mired in the Fuel-Efficiency scandal

'Increased workload’, ‘insufficient manpower’ among reasons for Suzuki's fuel efficiency misreporting.

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Today, the company’s press release states that “among the 16 models in the current line-up, Jimny, Jimny Sierra and Escudo 2.4 were not concerned. In addition to the remaining 13 models, Alto Eco (Start of Sales: December 2011, End of Production: November 2014) out of discontinued models, together with 12 models supplied to other manufacturers as OEM totalling to 26 models were discovered using driving resistance data measured by individual components and resistance factors.”
Quote:
SMC goes on to add that it carried out its “own fuel consumption tests on the most fuel efficient grade of each of the 14 models (26 models including OEM vehicles), using driving resistance data measured through the coasting test. The test confirmed that all models exceeded the fuel consumption data mentioned in the catalogue
http://www.autocarpro.in/news-intern...eporting-20151
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