MITSUBISHI MATERIALS DENTS JAPAN’S IMAGE
Buyers like Boeing and Airbus left scrambling to confirm whether product safety has been compromised
JAPAN’S reputation for manufacturing prowess took another hit as Mitsubishi Materials Corp admitted it faked data on some products just weeks after a similar scandal engulfed Kobe Steel Ltd.
Buyers of Japanese industrial goods from Boeing Co to Airbus SE were once again scrambling to confirm whether safety had been compromised after Mitsubishi Materials said three of its units had faked data on products that may have been delivered to more than 250 customers.
Its shares plunged as much as 11 per cent, here, the most in eighteen months.
Mitsubishi Cable Industries Ltd falsified data on rubber seals, while Mitsubishi Shindoh Co misreported the strength of brass strips for car parts, according to a statement on Thursday.
The products may have been shipped to 229 Mitsubishi Cable clients and 29 customers of Mitsubishi Shindoh.
A third unit, Mitsubishi Aluminum Co Ltd, also supplied nonconforming products, although it had already confirmed with customers that they were safe, said the firm, adding that its investigation hadn’t uncovered any cases that raised the possibility of legal violations or safety issues.
The revelation is the latest in a series of scandals to dent the image of Japanese manufacturers and closely resembles recent admissions by Kobe Steel that it falsified data on the strength and durability of its products.
In the automotive sector, Nissan Motor Co had said it conducted vehicle inspections that didn’t comply with regulations for almost four decades, while Subaru Corp allowed uncertified workers to inspect vehicles before shipment.
Takata Corp filed for bankruptcy earlier this year because of faulty airbags.
Mitsubishi Materials fell eight per cent to 3,765 yen (RM139.26) as of 10:22am. Its stock had hit a two-year high earlier in the month, buoyed by stronger global metals prices. Bloomberg