Mitsubishi Materials : push for market share led to data falsification

A push to expand market share had driven a subsidiary to fake product specification, according to Mitsubishi Materials Corp., one of several compliance scandals that have come to light this year, damaging the reputation of Japan Inc.

Mitsubishi Materials said on Thursday that its subsidiaries falsified data about products in November. This included parts for aircraft and automobiles. Earlier this month, Japan’s Kansai Electric Power Co. said that two of its nuclear plants used parts supplied by Mitsubishi Cable Industries with possibly falsified data.

Mitsubishi Materials said a committee looking into the case had found that Mitsubishi Shindoh, which was late to enter the market for metal products used in vehicle device connectors, had taken orders even when they could not meet customers’ product specification.

It also cited an urge to approve products to prevent losses, and a lack of awareness about compliance and quality assurance among its staff.

Other companies that have admitted to product data falsification include Kobe Steel and Toray Industries. Both also blamed a focus on profit, lax quality controls and staffing shortages.

(REUTERS)