TOKYO — Mitsubishi Motors Corp., which recently acknowledged it inflated mileage on its models, is forecasting a $1.4 billion loss for the fiscal year through March 2017.

The Japanese automaker said Wednesday vehicle sales will drop around the world, especially in Japan, where it expects a 41 percent plunge.

Mitsubishi senior executive officer Yoshihiko Kuroi discusses the company's expectations in Tokyo on Wednesday. Kyodo News via AP

The projected loss is a reversal from the 72.6 billion yen profit for the fiscal year ended in March.

Japan’s government found Mitsubishi had overstated mileage on its vehicles by up to 16 percent. Tokyo-based Mitsubishi Motors had a systematic way of cheating on mileage for eK minicar models, including those it supplied to Nissan Motor Co.

Mitsubishi says it didn’t lie about mileage on models sold overseas.

Nissan has said it is taking a 34 percent stake in Mitsubishi to help its turnaround, although Chief Executive Carlos Ghosn reiterated to shareholders Wednesday that the deal was not final until “due diligence,” and Nissan was checking into Mitsubishi.

Mitsubishi Motors said last week it will give $960 to each Japanese owner of a car with a false mileage claim to compensate for the extra gas costs and for inflating the mileage figure.

Such compensation will cost Mitsubishi $480 million, and payments to Nissan and other suppliers will cost another $960 million, it said Wednesday.

Slipping sales and expenses related to free inspections and other services in Japan will lower its operating profits by $530 million, it said.

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