Japanese Truckmaker Apologizes for Slow Defect Report, Denies Cover-Up

TOKYO March 29, 2005; Yuri Kageyama writing for the AP reported that the chief executive of Mitsubishi Fuso Truck and Bus Corp., a Japanese truckmaker tainted by a recurring recall scandal, apologized Tuesday for being late in reporting a defect suspected in several vehicle fires but denied any intended cover-up.

The latest problem with a suspension part in its trucks is a major embarrassment for the Tokyo-based manufacturer, which is 85 percent owned by DaimlerChrysler AG of Germany, at a time that it has been trying to break from a past scandal over systematic cover-ups of auto defects spanning decades.

No one was injured in the accidents related to the defect, estimated to affect about 8,000 trucks. The defect can cause fires or cause a nut to drop off, according to Mitsubishi Fuso. None of the trucks was exported.

Five years ago, Mitsubishi Motors Corp. shocked Japan by acknowledging it had been hiding auto defects for decades to avoid recalls. At that time, the truckmaker was part of the automaker. Past defects have been suspected in two fatal accidents -- one involving brake failure, and another a faulty bolt that may cause a wheel to fall off.

Chief Executive Wilfried Porth said his truckmaker had been busy with so many recalls that it unintentionally dallied in reporting to authorities the emerging defects in its trucks that had already undergone repairs under a past recall, as well as defects in newly produced trucks.

Porth said the latest problem had to do with speeding up communication with the public and the government, and denied any penalties were in order.

The first problem with an already recalled and repaired vehicle was reported in December last year. In January, two vehicle fires were reported, and another fire occurred in March.

Porth, sent in by DaimlerChrysler in 2003 to lead a turnaround at the truckmaker, also said the latest problem was different from the past scandal.

"I cannot see concealment," he told reporters at the transportation ministry, where he earlier met government officials to explain the latest problems. "This is absolutely not comparable to the past."

Last year, DaimlerChrysler abandoned support for Mitsubishi Motors but remains a major alliance partner with Mitsubishi Fuso. Porth had repeatedly promised cover-ups won't happen again.

Mitsubishi Motors, which is trying to revive its stumbling business under a bailout from the Mitsubishi group companies, a powerful Japanese conglomerate, is scheduled to give results of its investigation into the scandal Wednesday.

Porth said he found out for the first time on March 9 that a manufacturing defect is likely behind the recent problems. The government had been demanding an explanation from Mitsubishi Fuso about recurring problems since last year.

Both the truckmaker and the automaker have been plagued with continuing recalls, including a massive recall last year that included problems that should have been reported five years ago -- when the company first promised to come clean.