DHAKA: Mitsubishi Motors has forecast a net loss of 145bn yen ($1.4bn) for the current business year in the wake of its fuel efficiency scandal.

In April, the Japanese carmaker admitted it had been falsifying fuel efficiency tests for decades.

The expected loss marks the first fall in profit for the car firm since the 2008 financial crisis, reports the BBC.

Mitsubishi had already reported a 39% drop in net profit in the year to the end of March due to the fuel scandal.

In the wake of the scandal, some $3bn was wiped off its market value and in May fellow carmaker Nissan moved in to take a controlling stake.

Last week, Mitsubishi said it planned to give owners of four affected vehicles close to $1,000 in compensation for overstating the fuel efficiency of the cars.

In total, the reimbursement costs are estimated at least $600m.

It also said it was setting aside as much as $86m to reimburse customers for lost ‘eco car’ tax breaks for affected models.

BDST: 1619 HRS, JUN 22, 2016
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