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The encyclopedia · Engineering & Operations · Operational decision · 2000

Mitsubishi Motors hid defect complaints for 23 years — then apologised badly

A secret internal file called 'H' kept customer complaints away from regulators. When the cover-up broke in 2000, the president denied it for a month first.

Mitsubishi Motors · 2000-08

What happened

In August 2000, Mitsubishi Motors admitted it had systematically hidden customer defect complaints from Japan's transport ministry since 1977. The company kept two sets of records: complaints reported to regulators, and a secret internal file known as 'H' that stayed hidden. In 2000 alone, Mitsubishi had disclosed only four defects; the real number was 30.

President Katsuhiko Kawasoe denied the cover-up for a month before reversing course and apologising. The company recalled roughly one million vehicles. By 2004, a second investigation found 26 more hidden defects across 17 models including the Galant and Lancer, triggering another recall of 810,000 vehicles — three-quarters needing company-paid repairs.

The 2004 revelation proved the 2000 apology had not changed the culture. Mitsubishi faced possible criminal charges, and its credibility as a manufacturer was shattered. The case became Japan's textbook example of how a cover-up compounds the original failure.

Why it happened

  • The two-file system ('reported' and 'H') made concealment an institutional practice, not a rogue act — new employees inherited the habit.
  • The president's month of denial before apologising signalled to regulators and the public that the company's first instinct was still concealment.
  • The 2000 apology did not restructure the reporting system; the same practice surfaced again four years later with 26 more defects.
What it cost1.8M vehicles recalled; criminal investigationcostly

The lesson

A cover-up is a second decision that compounds the first. An apology that does not restructure the system that produced the concealment is a pause, not a fix.

Sources

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