Kobe Steel’s CEO said on Thursday the firm’s data-fabrication may have spread beyond Japan, as he was ordered by the government to report on how the misconduct occurred and address safety concerns.
Kobe Steel’s CEO said on Thursday the firm’s data-fabrication may have spread beyond Japan, as he was ordered by the government to report on how the misconduct occurred and address safety concerns that have sparked a scare along global supply chains.
Hiroya Kawasaki told reporters the cheating scandal has left Kobe Steel’s credibility at „zero,“ underscoring the deepening crisis at the steelmaker and the sweep of quality problems besetting Japan’s once-vaunted manufacturing sector.
„The credibility of Kobe Steel has plunged to zero. We will make efforts to regain trust as soon as possible,“ Kawasaki, 63, told reporters after meeting government officials.
A senior government official said managers at Kobe Steel were involved in fabricating data on products used in planes, trains and automobiles, but Kawasaki said his current priority is to deal with safety checks with its clients. The official did not elaborate.
The company has found possible further cases of tampering, the CEO said, including in overseas operations.
The Ministry of Economy, Trade and Industry ordered Kobe Steel to report on the results of safety checks within about two weeks and the reasons for the tampering, along with prevention measures in under a month.
He said he was not expecting to see recalls of cars or airplanes for now and none of the company’s customers have cancelled orders. Kobe Steel has no plans to sell assets at the moment, Kawasaki said.
Shares in Kobe Steel stabilized on Thursday after investors, worried about the financial impact and potential legal fallout, wiped about $1.
