This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-41585742

The article has changed 4 times. There is an RSS feed of changes available.

Version 2 Version 3
Kobe Steel scandal sparks car and train checks Kobe Steel scandal sparks car and train checks
(about 1 hour later)
Japanese car, train and aircraft makers are investigating whether they have used any sub-standard materials in their products. Car, train and aircraft makers are investigating whether they have used any sub-standard materials made by Kobe Steel.
The checks come after Kobe Steel admitted it falsified quality control data possibly for as long as a decade. The checks come after Japan's third largest steelmaker admitted falsifying quality data, possibly for as long as a decade.
Toyota, Nissan and Honda are among the companies examining their output. General Motors, Boeing and Toyota are among the firms checking their models.
Kobe Steel also said it had found a case of data falsification in its iron powder products and 70 cases at its Kobelco Research unit. An internal investigation at Kobe Steel found 70 cases of data tampering at its Kobelco Research unit.
Hitachi said its new trains in Britain used Kobe Steel but had all passed rigorous tests, while US plane manufacturer Boeing said it had not found any safety issues. Shares in Kobe Steel fell by nearly 40% in two days, wiping more than $1.5bn (£1.1bn) off its market value after the firm admitted fabricating data about the strength and durability of products it delivered to more than 200 companies.
Meanwhile, Mazda said it used aluminium made by Kobe in car bonnets. Kobe Steel spokesman Gary Tsuchida told the BBC the firm regrets the falsification of data.
"We are still investigating what vehicles that metal is in and deciding what action we need to take. We won't know if we need to take any action until those investigations are complete," a spokesperson said. "There were tens of employees involved. It seems in some cases quality control was undertaken by veteran employees who had lots of experience, highly trusted within the organisation, and somehow these discrepancies slipped by them."
Mr Tsuchida insisted that Kobe Steel was taking all necessary steps to investigate how this happened.
Kobe Steel's President Hiroya Kawasaki will meet a senior official at Japan's industry ministry on Thursday, reports say.
Widening crisis
In Japan and abroad, manufacturers that have used Kobe Steel materials have been racing to check that the safety of their own products has not been compromised.
Central Japan Railway said some Kobe Steel parts for its bullet trains did not meet Japanese industrial standards, but there were no safety issues.
Hitachi said its new trains in Britain used Kobe Steel but had all passed rigorous tests.
US plane manufacturer Boeing also said it had not found any safety issues. But Mazda said it was still investigating after it used Kobe aluminium in some car bonnets.
"We won't know if we need to take any action until those investigations are complete," a spokesperson said.
And Honda said that aluminium produced by Kobe Steel had been used in doors and bonnets of some of its cars.And Honda said that aluminium produced by Kobe Steel had been used in doors and bonnets of some of its cars.
Shares in Kobe Steel fell by nearly 40% in two days after it admitted fabricating data about the strength and durability of some of its products delivered to more than 200 companies. Japan Inc
The Japanese government has told the firm to check for any illegal conduct that could affect the safety of those products. The crisis at Kobe Steel is the latest in a string of recent scandals at major Japanese companies.
They include cases of falsified data at Nissan Motor and Mitsubishi Motors, while air bag maker Takata filed for bankruptcy in June over faulty airbags which were blamed for several deaths and many injuries.
Toshiba is still working to recover from an accounting scandal that began in 2015.
Martin Schulz from Fujitsu Research Institute said a focus on cost cutting has been one contributing factor to the corporate failures.
He said an extreme focus on reducing costs over the past two decades has seen "management in many subsidiaries bettering their results beyond their means, while an increasing focus on profitability is stretching the limits of quality control".