Metal scandal rocks Japan
Kobe Steel staff falsifies data on strength of some aluminium products
TOKYO: Kobe Steel Ltd unleashed an industrial scandal that reverberated across Asia’s second-largest economy after saying its staff falsified data related to strength and durability of some aluminium and copper products used in aircraft, cars and maybe even a space rocket.
The company’s stock ended 22% lower in Tokyo as customers including Toyota Motor Corp, Honda Motor Co and Subaru Corp said they had used materials from Kobe Steel that were subject to falsification.
Boeing Co, which gets some parts from Subaru, said there is nothing to date that raised any safety concerns. Rival aluminium makers gained.
Kobe Steel’s admission raises fresh concern about the integrity of Japanese manufacturers, and follows Takata Corp misleading automakers about the safety of its air bags, and last week’s recall by Nissan Motor Co of cars after regulators discovered unauthorised inspectors approved vehicle quality.
Kobe Steel said on Sunday the products were delivered to more than 200 companies but didn’t disclose customer names, with the falsification intended to make the metals look as if they met client quality standards. Chief executive officer Hiroya Kawasaki is now leading a committee to probe quality issues.
The fabrication of figures was found at all four of Kobe Steel’s local aluminium plants in conduct that was systematic, and for some items the practice dated back some 10 years ago, executive vice-president Naoto Umehara said on Sunday. The comments were confirmed by a company spokesman.
Toyota said it has found Kobe Steel materials, for which the supplier falsified data, in hoods, doors and peripheral areas.
“We are rapidly working to identify which vehicle models might be subject to this situation and what components were used,” Toyota spokesman Takashi Ogawa said. “We recognise that this breach of compliance principles on the part of a supplier is a grave issue.”
Kobe Steel said it discovered the falsification in inspections on products shipped from September 2016 to August 2017, adding there haven’t been any reports of safety issues. The products account for 4% of shipments of aluminium and copper parts as well as castings and forgings.
“The incident is serious,” said Takeshi Irisawa, an analyst at Tachibana Securities Co. “At the moment, the impact is unclear but if this leads to recalls, the cost would be huge. There’s a possibility that the company would have to shoulder the cost of a recall in addition to the cost for replacement.”
Subaru has produced training planes for Japan Self-Defense Forces and wings for Boeing jets such as the Boeing Dreamliner, according to a spokesman, who added the company was checking which planes and parts used affected aluminium.
“Nothing in our review to date leads us to conclude that this issue presents a safety concern, and we will continue to work diligently with our suppliers to complete our investigation,” Boeing said in a separate statement.
Honda said it used falsified material from Kobe Steel in car doors and hoods while Mazda Motor Corp confirmed it uses aluminium from the company. Suzuki Motor Corp and Mitsubishi Motors Corp all said they are checking whether their vehicles are affected.