Steel Firm Faked Data for Metal Used in Planes and Cars
- Kobe Steel says staff faked data on strength of some products
- METI says company must recover ‘trust of society as a whole’
Kobe Steel Says It Falsified Data
The industrial scandal engulfing Kobe Steel Ltd. began to reverberate overseas as Japan’s third-biggest steelmaker said its staff falsified data about the strength and durability of some aluminum and copper products used in planes, trains and potentially a space rocket.
Shares plunged 22 percent and the cost to insure Kobe Steel debt against default soared as customers including Toyota Motor Corp., Honda Motor Co. and Subaru Corp. said they had used materials that were subject to falsification while Hitachi Ltd. said trains exported to the U.K. were affected. One outside estimate put the potential cost of replacing the parts at about 15 billion yen ($133 million), but the damage to the company -- in the form of both reputational harm or possible legal challenges-- could be much greater.