News Worms
News Worms


Toyota and Honda affected by industrial scandal in Japan

Subaru also makes parts for the Boeing 777X next-generation large passenger jet, but says nothing so far has raised safety concerns.

Toyota, Nissan, Subaru, Mazda, Suzuki and Mitsubishi were also among auto companies potentially affected, as well as Kawasaki and Hitachi in other industrial uses.

Kobe has set up an investigation committee to address the issues, headed up by its Chairman, President and Chief Executive Officer Hiroya Kawasaki.

Doors and hoods are also affected at Nissan, a spokesman confirmed.

Smaller Japanese automaker Subaru said that it used Kobe Steel products not only for vehicles sold to retail customers but also in aircraft.

Aluminium castings, forgings and flat-rolled items, along with copper strips and tubes were among the products affected, the company said in a statement.

"The impact on financials is unclear, but could be substantial depending on request (s) for replacement/recall", Jefferies analyst Thanh Ha Pham said in a note. "There's a possibility that the company would have to shoulder the cost of a recall in addition to the cost for replacement".

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

Honda equally said it used the falsified material from Kobe Steel in vehicle doors and hoods while Mazda Motor Corp. confirmed it uses aluminum from the company. Some Kobe products were used in regional jets and rockets produced by Mitsubishi Heavy Industries. The rocket cleared all safety checks before launch, the company said.

The new Toyota Tundra TRD won't be impacted by the Kobe Steel scandal.

It said that inspection data on the products, including those on strength and duration of the materials, were rewritten by workers who were "under pressure" to meet a deadline when the actual data failed to meet customer specifications. Kobe Steel's aluminum and copper operations account for about 20 percent of total sales, according to data for the quarter ended June 30.

"Aluminium is a strategic business for Kobe Steel", said Irisawa at Tachibana Securities. "If the aluminum business doesn't work out well, I question where the company can make money", given the mainstay steel business remains one of low profitability, he said.

And this isn't the only scandal that's been coming out of Japan as of late. Hitachi Ltd., which used Kobe products in trains exported to the United Kingdom, said it's found no safety concerns.

Also, in February 2017, Takata pleaded guilty in the U.S.to one count of wire fraud for misleading automakers about the safety of its air bags.

Toyo Tire & Rubber officials were referred to prosecutors in March following the company's 2015 admission that it had falsified data on rubber for earthquake-proofing buildings.

follow

editors' picks

October 11, 2017
'Messi Must Win World Cup To Be Special'
South American World Cup qualifying is going down to the wire and two of the world's finest players are set to play a major part. As things stand, those two matches would take place in Wellington on November 8 with the return in Buenos Aires on November 15.

October 11, 2017
Iceland Qualified For The FIFA World Cup With A Thunderous Viking Clap
Trinidad & Tobago, which has a population of 1.3 million, was the previous smallest country to reach a World Cup back in 2006.

October 11, 2017
Firefighters battle fast-moving Anaheim Hills brush fire
Wildfires whipped by powerful winds swept through Northern California forcing evacuations as homes burnt. Fire officials said they expect about 1,000 firefighters to be on the lines by Tuesday morning.

October 10, 2017
India, Colombia kick-off die-or-die clash
Keeping India's defensive vulnerability in mind, the 63-year-old coach was asked what he thinks his side is lacking at the moment. Ghana would come to regret not taking their chances, as U.S. won all three points thanks to Akinola's goal on 75 minutes.

October 10, 2017
Saudi Arabia agrees to buy Russian S-400 missile system
The United States deployed THAAD to South Korea this year to guard against North Korea's shorter-range missiles. It is the first visit of a Saudi monarch to visit Mr Putin.

October 10, 2017
Microsoft Is Effectively Killing Windows 10 Mobile Now, Too
From a recent sales figure disclosed by Kantar Worldpanel, just 1.3% United States mobile market sold Windows phone . After the launch of Apple's iOS in 2007 along with Google's Android OS launch in 2008, the ecosystem has evolved.

October 10, 2017
Ivana Trump speculates her daughter Ivanka could run for presidency
Two weeks ago, the first lady heard from experts and people affected by drug addiction whom she invited there for a discussion. According to Associated Press , Ivana writes glowingly about her prominent role at the Trump Organization.

October 10, 2017
Yelberton Abraham Tittle Jr., known as YA Tittle died at 90
Tittle never won a championship but was shown in an iconic photo taken by Dozier Mobley during his final season in 1964. Tittle lettered from 1944-47 and led LSU to victory in the 1947 Cotton Bowl following his junior season.

October 10, 2017
Native Americans To Picket OKC City Hall On Columbus Day
Still, Columbus Day is celebrated in many parts of the United States and is observed by the federal government. It takes more than a few cities replacing Columbus Day with Indigenous People Day , but it's a start.

October 10, 2017
Rose Leslie Was Spotted Wearing Her New Engagement Ring
The actor recently announced his engagement to his Game of Thrones co-star Leslie, who played Ygritte in the HBO show before leaving in 2014.