DNZOY Denso Corp Ltd (PK)

By William Boston 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (January 22, 2020).

BERLIN -- German authorities raided facilities connected to the German subsidiary of Mitsubishi Motors Corp. as part of a probe into allegations that the Japanese auto maker installed illegal emissions-management software on some diesel-powered vehicles sold in Germany.

The investigation into potential fraud -- officially launched in mid-November but only made public by the prosecutor on Tuesday -- has echoes of the emissions scandal of 2015. That year, U.S. authorities charged Volkswagen AG with using illegal software to cheat emissions tests on millions of diesel vehicles. The German auto maker later admitted to committing fraud and has paid more than $30 billion in fines, fees, and penalties.

Mitsubishi hasn't been charged with any crime. It isn't clear how many vehicles incorporate the alleged illegal software, but the prosecutor said vehicles believed to be affected could lose their certification and be banned from public roads.

A spokesman for Mitsubishi's European management said the company first learned of the investigation on Tuesday when police raided the offices of two facilities: its European research and development center and its German distributor, both near Frankfurt.

"We are just learning about the whole thing now," said Daniel Narcass, spokesman for Mitsubishi Motors Europe BV. "Of course, we will cooperate fully, but we still aren't sure what this is all about."

Nadja Niesen, the German prosecutor in Frankfurt, said the investigation was launched in November after Germany's motor vehicle authority told the prosecutor's office that some Mitsubishi vehicles showed evidence of illegal software during a routine test.

The investigation focuses on Mitsubishi brand vehicles with 1.6 liter and 2.2 liter four-cylinder diesel engines that are subject to Euro 5 and more-contemporary Euro 6 emissions standards, the prosecutor's office said.

"It is suspected that the vehicles contain so-called defeat devices that ensure that legal nitrogen-oxide emissions limits are kept during treadmill tests but not during real driving," Ms. Niesen said.

The investigation also targets two international automotive suppliers that the prosecutor declined to identify.

Continental AG and Japan's Denso Corp., both among the world's biggest makers of auto parts, said their facilities were searched.

"Continental is being treated as a witness and is cooperating fully with authorities," the German company said in a statement. Denso also said it was cooperating.

By late afternoon Tuesday, police were still searching 10 locations in the states of Hesse, Lower Saxony and Bavaria.

After the Volkswagen emissions scandal, investigators in Europe and the U.S. have discovered that the use of illegal software to manipulate emissions of diesel engines is more widespread than initially believed.

Mr. Narcass, the Mitsubishi spokesman, said he couldn't comment about what, if any, measures the company would take.

Write to William Boston at william.boston@wsj.com

(END) Dow Jones Newswires

January 22, 2020 02:47 ET (07:47 GMT)

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