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:
“I well recall my horror when I heard for the first time, of a journalist who had laid in a pair of what were then called bicycle pants and taken to golf; it was as if I had encountered a studhorse with his hair done up in frizzes, and pink bowknots peeking out of them. It seemed, in some vague way, ignominious, and even a bit indelicate.”
—H.L. (Henry Lewis)
“Nothing can we call our own but death,
And that small model of the barren earth
Which serves as paste and cover to our bones.”
—William Shakespeare (1564–1616)