Mitsubishi Materials says push for market share led to data falsification

28 Dec, 2017 11:58 am

TOKYO (Reuters) – Mitsubishi Materials Corp said on Thursday that a push to expand market share had driven a subsidiary to fake product specification, one of several compliance scandals that have come to light this year in a blow to the reputation of Japan Inc.

Mitsubishi Materials said in November that its subsidiaries falsified data about products, including parts for aircraft and automobiles. Japan’s Kansai Electric Power Co said earlier this month that two of its nuclear plants used parts with possibly falsified data supplied by Mitsubishi Cable Industries, one of the units.

Mitsubishi Materials said a committee looking into the case had found that Mitsubishi Shindoh, which was late to enter the market for metal products used in device connectors for cars, had taken orders even when they could not meet customers’ product specification.

It also cited an urge to approve products to prevent losses, and a lack of awareness about compliance and quality assurance among its staff.

Other companies that have admitted to product data falsification including Kobe Steel  and Toray Industries  have also blamed a focus on profit, lax quality controls and staffing shortages.

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