Recall Cover Up
Shortly after the deal was finalised, Mitsubishi became embroiled in accusations that it had covered up complaints from customers about defects in their vehicles. A police raid on its headquarters in July 2000 uncovered hidden documents stashed in a locker, and soon after over 500,000 vehicles were recalled for repairs. Mitsubishi's shares fell by 13 percent as these revelations became public, and over the summer, further investigations took a similar toll on the company's stock. By the end of August, following a second police raid, the total number of vehicles recalled had reached one million, while the share price had fallen by almost 30 percent. As a result of the collapse in the value of Mitsubishi, DaimlerChrysler renegotiated a €200 million reduction price of its stock purchase, while Kawasoe was forced to step down as chairman.
Read more about this topic: Daimler Chrysler-Mitsubishi Alliance
Famous quotes containing the words recall and/or cover:
“Imagining that I could
A greater with a lesser pang assuage
Or but to find if withered vein ran blood,
I tore my body that its wine might cover
Whatever could recall the lip of lover.”
—William Butler Yeats (1865–1939)
“He is a stranger to me but he is a most remarkable man—and I am the other one. Between us, we cover all knowledge; he knows all that can be known and I know the rest”
—Mark Twain [Samuel Langhorne Clemens] (1835–1910)