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The eBearing News
November 25, 2004


Mitsubishi-Fuso Recalls Almost All Trucks
for Wheel Bearing Failures
copyright © 2004 eBearing Inc.

Mitsubishi Fuso Truck and Bus Corp. (formerly a division of Mitsubishi Motors, but since 2003 a separate entity 65% owned by DaimlerChrysler) is now recalling essentially all of its Fuso large trucks still on the road, to replace defective front and rear wheel bearings.

This latest recall, involving front hub bearings on 60,000 more Fuso trucks, means every Fuso truck built since 1983 is now under recall for defective front and/or rear wheel bearings.

The problems and recalls tied to Fuso trucks are more widespread than just bearings; there are numerous recalls on all the Fuso trucks, particularly for a defective clutch mechanism which is prone to fail and cut the hydraulic brake lines in the process. At least one truck driver died in a crash when his rig's clutch failed and cut the brakes.

Japan's Ministry of Transport is reportedly considering the unprecedented step of stopping all Fuso truck sales. They have already initiated a very rare on-road program of spot checks on Fuso trucks, on top of stronger periodic inspection requirements.

The International Organization for Standards (ISO) recently rescinded all ISO certifications for all of Mitsubishi Fuso. Fuso lost its ISO9001 quality management system certification earlier.

Fuso President, Wilfried Porth, said the total number of Fuso trucks now under recall exceeds 910,000, and the company is obligated for repair costs topping ¥63 billion (USD $610 million).

The problems at Fuso go back many years; Mitsubishi recently admitted to fostering a long-term business climate of fraud and deception, where defects were hidden from buyers and safety authorities, and recalls done in secret.

•March 2004: Fuso wheel hub failures prompt recall campaign
•May 2004: Seven Mitsubishi executives indicted in coverup schemes
•June 2004: Mitsubishi executives arrested
In June, two Fuso trucks in Japan caught fire due to defective right side hub bearings, marking the 14th and 15th wheel bearings fires Fuso admits to experiencing since 1994. Many believe the actual number is far higher, based on their reported frequency.

Also in June, New Zealand's Land Transport Safety Authority ordered all 850 Fuso trucks and buses there recalled for front hub bearings replacement. These trucks and school buses were all independently imported between 1983 and 1998.

In July, 2,600 Fuso trucks with newly-replaced recall wheel hub units were recalled a second time. It seems the second hub bearing units installed under recall are also defective -- found to have a serious engineering design defect.

There has also been widespread derision for the company's seeming failure to come to terms with the depth and breadth of the situation. In late June 2004, a total of 29 employees were punished by Fuso for their parts in the secret recall and defect cover-up schemes, due to which at least three people died:
  • 19 were ordered to submit letters of apology
  • 4 senior managers had their salaries cut 50% for one day
  • 4 senior managers were suspended for five days
  • 2 senior managers had their salaries cut 30% for three months

Separately, DaimlerChrysler, which owns 65% of Mitsubishi Fuso, booked a charge of $500 million against third quarter earnings to adjust for the current costs and previous costs for the problems now coming to light at Mitsubishi Fuso. DaimlerChrysler had already taken an $87 million charge in the second quarter for those same problems.

Taking the $500 million charge, DaimlerChrysler said it is, "investigating the relevance and extent of bringing forward a claim," against Mitsubishi Motors for the problems at Fuso. All of the problems, recalls and expenses now coming to light began while Fuso was a division of Mitsubishi Motors, long before DaimlerChrysler became involved.

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- by Bruce A. Carr
from individual research,
tips and commercial sources.
Unauthorized reproduction is prohibited.


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eBearing.com ... for everything that moves™
Entire contents Copyright © 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered trademarks of eBearing Inc.