Scandal-hit Mitsubishi Materials sees shares plunge

Scandal-hit Mitsubishi Materials sees shares plunge

Scandal-hit Mitsubishi Materials sees shares plunge

According to the statement, Mitsubishi Cable uncovered the falsification in February and stopped shipping affected products on October 23; the company told its parent two days later.

Mitsubishi Cable Industries had been misrepresenting data on rubber sealants used in automobiles and aircraft, the company added.

The products, with altered specification data were sent to, among others, 70 firms involved in the aerospace industry and seven in the automotive industry, it was revealed.

Another subsidiary, Mitsubishi Shindoh, manipulated data for metal products, used in cars and electronics, as far back as October a year ago.

Another subsidiary, Mitsubishi Shindoh, was found to have delivered metal products with quality levels below what was claimed by the company or requested by customers, it said.

That joint venture includes the Hatano plant that has become the focus of Kobe Steel's data falsification scandal, and been stripped of numerous Japanese and worldwide quality certifications.

The company said that three of its subsidiaries faked data on products to meet specifications. Ltd., also supplied non-conforming products, although it has already confirmed with customers that they are safe, the company said, adding that its investigation has not so far uncovered any cases that raise the possibility of legal violations or safety issues. A third subsidiary, Mitsubishi Aluminium, also shipped products which did not meet customers' specifications.

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The latest scandal to cast serious aspersions on quality control protocols and overall corporate governance in Japan Inc.'s manufacturing sector, comes on the heels of data falsification improprieties at Kobe Steel Ltd., and uncertified safety checks carried out by Nissan Motor Co. and Subaru Corp., which led to extensive recalls. It said it found problems at Mitsubishi Shindoh going back to October 2016. While the units affected are relatively small, the company said it can't yet quantify the impact on its earnings.

Shares of Mitsubishi Materials, a division of one of Japan's biggest conglomerates, saw shares fall by as much 11 per cent on Friday after admitting to a quality scandal.

Mitsubishi Shindoh started an internal probe last month and discovered the data falsification.

"My responsibility is to bring countermeasures across the whole company based on the results of the investigation", said Mitsubishi Materials president Akira Takeuchi, in response to questions about whether he would resign over the matter. It submitted a report to Japan's transport ministry on Friday.

Mitsubishi Materials said it would hold a press conference today regarding the matter.

Mitsubishi has promised that it will rectify all the mistakes in the production and improve its quality control to make sure the issues do not get repeated again.

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