Mitsubishi Materials shares drop

Mitsubishi Materials Corp announced product data from three subsidiaries. Inspection data was falsified on automobiles, aircraft, and industrial machinery parts affecting more than 250 customers. Other Japanese manufacturers that are going though compliance failings include Nissan Motor Co Ltd, Subaru Co Ltd, and Kobe Steel Ltd.

Mitsubishi Materials’ latest misconduct involves data falsification at subsidiary Mitsubishi Cable Industries Ltd that occurred back in February. The company took too much time in revealing the wrongdoing and distorted data on about 20% of their rubber sealing products used in cars and aircraft for 2 and a half years. 229 customers were potentially affected with only 40 that were informed about this issue. About only half of 29 potentially affected customers had also been informed on Mitsubishi Shindoh Co Ltd.’s manipulation of data for metal products used in cars and electronics. Mitsubishi Aluminum Co Ltd. also shipped products that didn’t meet specification.

Following these incidents, Mitsubishi Materials claimed to stop shipping affected materials from the two facilities last month. Japan’s defense ministry is also working to establish the impact of these wrongdoings but doesn’t plan to stop using any equipment. The company plans to hold a news conference sometime this week.

“Making an announcement without pinning down the problem would have caused further disruption and trouble,” Mitsubishi Cable President Hiroaki Murata told reporters.

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