Japan’s third-largest steelmaker has admitted it faked data on parts used in cars, planes and trains.
Kobe Steel, Japan’s third-largest steelmaker, has admitted it faked data about the strength of products delivered to more than 200 companies for the past decade.
Kobe supplies components to industries where safety is vital, including car, train and aircraft producers, so it’s a scandal that’s unsettling the transportation industry worldwide.
General Motors, Boeing, Toyota and Honda are among the firms checking their products and supply chains.
The manufacturer of the Japanese Shinkansen bullet trains says it’s already found parts supplied by Kobe that failed to meet industry standards. The 112-year-old metals manufacturer said further cases could come to light.
Florence Looi reports from Tokyo on the issues behind the scandal and the impact on Japan’s reputation.
Marcel Thieliant, an economist at Capital Economics, joins Counting the Cost to discuss the Kobe scandal and Japan’s corporate culture.
«It’s definitely a grave threat to the company’s future… but there is a chance that they wil recover from this,» Thieliant says.
«These companies have been around for a very long time and they are facing heavy competition from China and other countries. It’s also the corporate culture. Employees work there for a very long time… they don’t want to loose their jobs….
