Ja­pan steel scan­dal grows as more car­mak­ers hit

After Kobe Steel said it has sys­tem­at­i­cally fab­ri­cated in­spec­tion data for alu­minium and cop­per prod­ucts, auto gi­ants were scram­bling to as­sess the qual­ity of their ve­hi­cles that used prod­ucts from the firm

Daily Sabah (Turkey) - - Business -

TOP Ja­panese au­tomak­ers said yes­ter­day they were scram­bling to as­sess the safety of ve­hi­cles con­tain­ing prod­ucts from Kobe Steel, which has ad­mit­ted fal­si­fy­ing qual­ity data in a grow­ing scan­dal. Toy­ota, Nis­san, Honda, Mit­subishi Mo­tor, Subaru and Mazda joined avi­a­tion firms and de­fence con­trac­tors Mit­subishi Heavy In­dus­tries, Kawasaki Heavy In­dus­tries and IHI that have used the steel­maker’s prod­ucts. The brew­ing cri­sis is the lat­est in a string of qual­ity con­trol and gov­er­nance scan­dals to hit ma­jor Ja­panese busi­nesses in re­cent years, un­der­min­ing the coun­try’s rep­u­ta­tion for qual­ity. Ja­pan’s fa­mous “Shinkansen” bul­let trains also used Kobe Steel’s alu­minium, as did high-speed trains in Bri­tain, ac­cord­ing to en­gi­neer­ing firm Hi­tachi.

“Prod­ucts used (for both Ja­panese and it was in talks with one client who re­ceived steel pow­der that did not match spec­i­fi­ca­tions. How­ever, it de­clined com­ment on a me­dia re­port that ma­te­ri­als used in semi­con­duc­tors were also im­pacted by the scan­dal. The Kobe Steel scan­dal broke on Sun­day when the man­u­fac­turer first ad­mit­ted fal­si­fy­ing data linked to the strength and qual­ity of prod­ucts. An in­ter­nal probe has re­vealed that data were fab­ri­cated for about 19,300 tons of alu­minium prod­ucts, 2,200 tons of cop­per prod­ucts and 19,400 units of alu­minium cast­ings and forg­ings shipped to clients be­tween Septem­ber 2016 through Au­gust 2017.

The stock dived 22 per­cent on Tues­day to fin­ish at 1,068 yen ($9.50), its maximum daily loss limit -- wip­ing al­most one bil­lion dol­lars off the firm’s market value. Yes­ter­day it plunged a fur­ther 17.8 per­cent to close at

Kobe Steel’s Ex­ec­u­tive Vice Pres­i­dent Naoto Ume­hara (R) bows his head to apol­o­gize at a news con­fer­ence in Tokyo.

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