Kobe Steel shares melt as falsified data scandal heats up

Kobe Steel CEO Kawasaki has run the company since 2013, and has recently overseen moves to expand its presence in aluminium.

Manufacturers around the world were checking the safety of cars, trains, aircraft and rockets yesterday after Japan's second biggest aluminium maker admitted falsifying safety data for more than 40,000 tons of metal going back as far as ten years.

Kobe Steel said on Sunday the products were delivered to more than 200 companies but it did not disclose customer names.

Aluminum is widely used in cars, planes and high-speed trains in Japan which use the light-weight metal to increase fuel efficiency.

Kobe Steel said it discovered the falsifications in inspections on products shipped from September 2016 to August 2017.

Honda also confirmed it used materials with false ratings in its doors and hoods, while Mazda and Mitsubishi are now investigating whether their vehicles are affected.

The falsification was meant to make the metals look as though they met client quality standards.

According to Kobe Steel, the falsification was carried out at four Japanese factories. Also Boeing Co., which gets some parts from Subaru, said there's nothing to date that raises any safety concerns.

General apprehension greeted the news and investors reacted swiftly as shares in Kobe Steel dived by more than a fifth after the company's admission to faking data about the quality of its products.

Kobe said that at present there was no evidence that the "nonconforming" products would compromise safety.

Japan's largest automaker Toyota said the compliance breach was a "grave issue", adding that Kobe Steel's products were used in vehicle doors and hoods.

In an internal audit, it was found that the company had corroborated data on the characteristics of multiple aluminum and copper parts and components.

But the Nikkei newspaper said Toyota and Mitsubishi Heavy Industries, producer of the Mitsubishi Regional Jet passenger plane, are among notable clients affected.

A rocket it launched yesterday reportedly had materials sourced from Kobe Steel. The affected products account for about 4 percent of its shipments of aluminum and copper parts and aluminum castings and forgings.

"We perceive that there was no problem as the rocket launch was a success", he said.

In all, about 200 Japanese companies are impacted, including a number of vehicle manufacturers, as well as the Central Japan Railway, or JR Tokai.

"We want Kobe Steel to make the utmost effort to restore trust from society", he said.

Nissan last week recalled more than 1-million cars in Japan.

Related News:

  • Australia level T20 series with emphatic win over India

    Australia level T20 series with emphatic win over India

    However, Australia were able to tighten their noose around India in the middle overs through Adam Zampa (2/19 in four overs). His 4-21 against India was a fearsome display of new-ball bowling, rather than a variation-heavy T20 spell.
    Man sues Chicago Cubs, MLB after foul ball injury

    Man sues Chicago Cubs, MLB after foul ball injury

    While the Chicago Cubs are facing the Washington Nationals in the playoffs, they reportedly are also facing a lawsuit from a fan. Loos said the high-speed ball destroyed his eye, which may need to be replaced with a prosthetic, and broke five facial bones.
    John Legend looked exactly like Luna as a baby

    John Legend looked exactly like Luna as a baby

    Chrissy has also come out in the open about her post-partum depression and her struggle to finally reach out for help. In fact, he also got nostalgic too by posting a series of his own throwback photos in honor of "Flashback Friday".
  • Assassin's Creed Origin DLC Details Revealed

    Assassin's Creed Origin DLC Details Revealed

    At launch you'll get " The Nomad's Bazaar ", which will put a wandering merchant in the game who will give you daily quests. That isn't all, though, as there is a breadth of free content that will be regularly released between now and then.
    Blade Runner 2049 Rotten Tomatoes Score Is In

    Blade Runner 2049 Rotten Tomatoes Score Is In

    The feature film to the hit children's TV show stars the voice work of Emily Blunt , Kristin Chenoweth, and Uzo Aduba. Monday's final result throws serious doubt onto what had been high hopes for a box office success story.
    United Nations  refugee agency alarmed by surge in fleeing Rohingya migrants

    United Nations refugee agency alarmed by surge in fleeing Rohingya migrants

    The World Food Programme (WFP) said the cuts were temporary and due to delays in receiving payments. But even as refugees arrive, Bangladesh insists they will all have to go home.
  • Apple's Face ID may not be iPhone X exclusive for long

    Apple's Face ID may not be iPhone X exclusive for long

    The Apple iPhone 7 and 7 Plus were the two best-selling smartphones in the first half of 2017, as per IHR reports . As was later established, the problem has caused the design defect.
    Trump commends Dallas Cowboys owner, Jerry Jones for warning players

    Trump commends Dallas Cowboys owner, Jerry Jones for warning players

    And my understanding of what both of those guys did based on the conversations I had with them was that occurred after the anthem. But there is no question in my mind that the National Football League and the Dallas Cowboys are going to stand up for the flag.
    Smalling names four current players in dream Man United XI

    Smalling names four current players in dream Man United XI

    Lukaku missed the 4-3 win over Bosnia on Saturday with an ankle injury picked up before United's 4-0 win over Crystal Palace . Martinez said: 'Romelu is fit and available, he's training with us tonight, ' said Martinez.
  • Iceland become smallest nation to qualify for 2018 World Cup

    Iceland become smallest nation to qualify for 2018 World Cup

    Qualification for Russian Federation 2018 has been won the hard way, winning a group containing Ukraine , Croatia and Turkey . There were also 1-0 wins for Spain over Israel (Asier Illarramendi, 76th) and Italy over Albania (Antonio Candreva, 73rd).
    The finer details of Southwest's big three-day sale

    The finer details of Southwest's big three-day sale

    Looking to get away? Southwest Airlines' 72-hour sale is underway, offering discounted flights to a number of destinations. Deals out of Kansas City, include 49 one-way flights to Chicago, Indianapolis, Milwaukee, Minneapolis, Nashville and St.
    Shafiq reaches 100 as Pakistan look to save series

    Shafiq reaches 100 as Pakistan look to save series

    We didn't play good cricket. "We will have some senior players returning and I hope we'll play better cricket there". With the new ball due early on Day 5, Sri Lanka will fancy a wicket or two to get through to the Pakistan tail.


Most liked

Bank of America Corporation (BAC) - Citigroup Maintains Rating And Raises Price Target
Jefferies Group LLC reissued a "buy" rating on shares of Bank of America Corporation in a research report on Friday, July 7th. The Company is engaged in the business of selling, leasing, financing and managing information technology.

Explore Volatility Factor for Clear Picture: NVIDIA Corporation (NVDA)
It increased, as 8 investors sold RXDX shares while 16 reduced holdings. 41 funds opened positions while 77 raised stakes. Therefore 53% are positive. 09/21/2017 - NVIDIA Corporation had its "buy" rating reiterated by analysts at Craig-Hallum.

Mark Zuckerberg 'visits' hurricane-hit Puerto Rico in VR promo
They later visited the virtual moon, but not until a technical glitch interrupted transmissions and kicked them back into reality for a while.

Musk counters Model 3 'handbuilt' claims with a production line video
In the same video , Sullins reiterated that the Model Y should arrive in the market sometime in late 2019 or in early 2020. Using the proposed leaked photos as a reference point, the rendered Tesla looks sleek compared to other large semis.

USA slaps Bombardier with 300 percent in duties after Boeing complaint
Canada has threatened to cancel the planned purchase of 18 Super Hornets to temporarily augment Canada's aging fleet of CF-18s. But whether or not Bombardier's jets will face import duties of 300 percent, Boeing may have lost a major sale in Canada.

Jennifer Lawrence deeply disturbed by Harvey Weinstein reports
Unlike others in the industry, who have said they were not aware of his alleged actions, the Oscar victor tweeted her reaction. That's the only word you can start with.

Prince Harry launching mental health campaign for British soldiers
Harry was in the military for a decade, and from his first-hand experiences knows how important mental well-being is. Princess Diana's son described those who fought for their nation as "prized assets" which need to be nurtured.

Snapchat's new Context Cards give users less reason to search
While geo-focused snaps contain geographic information, the new Context Cards will give users so much more to look at. The information you see there will be provided by Snapchat partners like FourSquare, TripAdvisor, and Michelin.

Kenya's opposition candidate has withdrawn from the election rerun
The opposition had said the elections had been fraught with irregularities despite electoral observers calling it free and fair . The uncertainty has also hamstrung east Africa's largest economy, leading to a slowdown in business across the private sector.

Kate Middleton pregnant: Her nausea calms down, she's getting better and better
Kate made an unusual appearance without William by her side in a video released last month aimed at educating young children about mental health.

Blackburn Responds to Twitter Censorship: 'Double Standard' for Pro-life Content
Known for her commitment to the pro-life movement, Congresswoman Blackburn reveals in the banned video, "I'm 100% pro-life". But the videos, and the idea that Planned Parenthood was harvesting aborted fetuses for parts, have both been debunked .

Warrant Obtained For Deandre Harris, Black Man Filmed Beaten In Charlottesville Riot
That's when six of these #white nationalists came down and beat Harris as he was curled up on the ground. Harris was participating in the counter-protest during the " Unite the Right " rally on August 12.

Making Strides Against Breast Cancer walk being held on Sunday
By the same token, not all women have benefited equally from these improvements, as evidenced by variation in mortality trends. Bayer HealthCare Multi Vendor Service will fix your transducer with the same precision and care you provide to your patients.

Sixers, Joel Embiid agree to max contract extension
Embiid had 32 points and seven rebounds in a January 27 game against Houston and hasn't played or practiced since his he was hurt. Only playing about 30 games in the last couple of years, Embiid hasn't had a whole lot of time to prove he's worth this contract.

Behavioral Economics Pioneer Thaler Wins Nobel Prize for Economics
He added that he intends to use the prize money to support further research. The concept has now expanded to the United States and even Australia.