Kobe Steel scandal adds to Japan’s tarnish
The latest Japanese corporate scandal, soon after Nissan’s vehicle recall, is a result of inexorable global competition, experts say
Tokyo — Embarrassing scandals at Kobe Steel and Nissan have tarnished the reputation of Japan Inc for quality, as once-mighty industrial world-beaters battle fierce global competition and shrinking profit margins. Once again, the image of a corporate boss bowing deeply in apology before the cameras has been splashed across Japan’s newspapers and has sparked a fresh bout of national soul-searching. Kobe Steel president and CEO Hiroya Kawasaki admitted his firm falsified quality data in products shipped to about 500 clients, including car maker Toyota, aircraft manufacturers and defence contractors. The news that the affected parts were also used in Japan’s Shinkansen bullet trains deepened the humiliation for the "Made in Japan" brand, which was once a byword for quality. The revelation wiped $1.8bn off the Kobe Steel share price last week — a drop of more than 40% — as the scandal deepened and widened to other products, such as steel wire, a key company product. The Kobe Steel news ...
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