Kobe Steel Ltd. said Tuesday that it has been asked by the U.S. government to submit documents related to a data fabrication scandal which has engulfed Japan's third largest steelmaker.
The company said in a statement that its subsidiary Kobe Steel USA, Inc. had been asked by the U.S. Justice Department to submit documents related to products sold to U.S. customers that had been subjected to data fabrication.
Local media said the investigations could lead to congressional hearings in the United States as similar hearings were held regarding Tak0ata Corp.'s problematic airbags, which were blamed for more than a dozen deaths.
It came to light earlier this month that Kobe Steel had fabricated data on strength and durability of some of its aluminum and copper products.
The company later admitted to also falsifying inspection data on iron powder and nine other products, with affected products sold to some 500 companies globally.
The misconduct ensnared a wide range of Japanese manufacturers, with problematic products used in cars, aircraft, Shinkansen bullet trains and even rockets and defense equipment.
According to a survey of Teikoku Databank Ltd. released on Monday, however, the scandal is expected to affect more companies as Kobe Steel has over 6,000 business clients in Japan.
Meanwhile, international corporations including General Motors Co., Ford Motor Co., Airbus and Boeing Co. were also reportedly investigating whether they used any of affected materials.
Kobe Steel Ltd. Chairman and President Hiroya Kawasaki said last week that the results of safety inspections on shipped products would be made within two weeks and details of the firm's response to products undergoing false inspection data would also be given.
He added the root cause of the extensive scandal, that has affected auto giants such as Toyota, Mazda and General Motors, would also be made known within a month.
The company said on Tuesday that the impact of the data falsification scandal on its earnings was still unknown.
Since the scandal was revealed on Oct. 8, the company's market value has been wiped off for over 40 percent.
"The scandal would also impact the economy of Japan's Kansai region" where the embattled steelmaker and many of its clients are headquartered, said Masayoshi Matsumoto, head of Kansai Economic Federation on Monday.
The scandal followed a series of similar improprieties recently in Japan, with Japan's Nissan Motor Co. saying earlier this month that it will recall more than 1.2 million vehicles which underwent flawed safety inspections.
The scandals have cast doubts over corporate governance in the manufacturing industry and beyond in Japan, raising concerns over the quality of the "Made in Japan" brand.
The company said in a statement that its subsidiary Kobe Steel USA, Inc. had been asked by the U.S. Justice Department to submit documents related to products sold to U.S. customers that had been subjected to data fabrication.
Local media said the investigations could lead to congressional hearings in the United States as similar hearings were held regarding Tak0ata Corp.'s problematic airbags, which were blamed for more than a dozen deaths.
It came to light earlier this month that Kobe Steel had fabricated data on strength and durability of some of its aluminum and copper products.
The company later admitted to also falsifying inspection data on iron powder and nine other products, with affected products sold to some 500 companies globally.
The misconduct ensnared a wide range of Japanese manufacturers, with problematic products used in cars, aircraft, Shinkansen bullet trains and even rockets and defense equipment.
According to a survey of Teikoku Databank Ltd. released on Monday, however, the scandal is expected to affect more companies as Kobe Steel has over 6,000 business clients in Japan.
Meanwhile, international corporations including General Motors Co., Ford Motor Co., Airbus and Boeing Co. were also reportedly investigating whether they used any of affected materials.
Kobe Steel Ltd. Chairman and President Hiroya Kawasaki said last week that the results of safety inspections on shipped products would be made within two weeks and details of the firm's response to products undergoing false inspection data would also be given.
He added the root cause of the extensive scandal, that has affected auto giants such as Toyota, Mazda and General Motors, would also be made known within a month.
The company said on Tuesday that the impact of the data falsification scandal on its earnings was still unknown.
Since the scandal was revealed on Oct. 8, the company's market value has been wiped off for over 40 percent.
"The scandal would also impact the economy of Japan's Kansai region" where the embattled steelmaker and many of its clients are headquartered, said Masayoshi Matsumoto, head of Kansai Economic Federation on Monday.
The scandal followed a series of similar improprieties recently in Japan, with Japan's Nissan Motor Co. saying earlier this month that it will recall more than 1.2 million vehicles which underwent flawed safety inspections.
The scandals have cast doubts over corporate governance in the manufacturing industry and beyond in Japan, raising concerns over the quality of the "Made in Japan" brand.
Latest comments