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Mitsubishi Materials joins list of data scandals

Friday, November 24, 2017 - 01:39

Shares of Mitsubishi Materials Corp fall as much as 11 percent to their lowest since August as it reveals its subsidiaries have falsified product data. As David Pollard reports, it's the latest in a series of quality assurance scandals to take the shine off Japan's corporate image.

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Subaru, Nissan, Kobe Steel .... Japan shaken by compliance scandals .... With, now Mitsubishi Materials joining the list. Its bosses told this news conference of inspection data falsified on parts for aircraft, cars and industrial machinery. And not just for civilian use. (SOUNDBITE) (Japanese) PRESIDENT OF MITSUBISHI MATERIALS CORP., AKIRA TAKEUCHI, SAYING: "Regarding sealing products, they were used by Japan's defense ministry and we found some of the products did not meet defence ministry quality standards." The parts in question were rubber sealing products and metal components manufactured by subsidiaries. 250 customers could, potentially, be affected. Boeing is among those looking into the issue - along with domestic giants, Toyota, Honda and Nissan. The government, too, watching closely. (SOUNDBITE) (Japanese) JAPANESE TRADE AND INDUSTRY MINISTER, HIROSHIGE SEKO, SAYING: "These misconducts are betrayals of trust in Japanese manufacturing. The ministry urges the entire manufacturing industry to prevent such betrayals." Mitsubishi Materials says it doesn't know how its financial impact would be impacted. No safety issues have been uncovered, it says. SOUNDBITE (English) CHIEF ECONOMIST, WORLD FIRST, JEREMY COOK, SAYING: "None of this has really led to any huge safety recalls and obviously at the moment, fingers crossed, has not led to any fatalities at the moment either. So in the grand scheme of things it does look like the contamination, almost, is contained." But like others hurt by their scandals - the impact on its shares was immediate. Mitsubishi's falling 11 per cent on the news ...

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Mitsubishi Materials joins list of data scandals

Friday, November 24, 2017 - 01:39