Kobe steel scandal is getting serious

The third biggest steel company in Japan admitted falsifying data.

Earlier this week, Kobe admitted falsifying quality data on some of its products for up to a decade. The news has wiped out about $1.8bn off Kobe Steel’s market value this week.

The influence spread to many industries.

Material company, which is upstream in the resource value chain, give huge influence to several industries easily.

  • Carmakers : Toyota Motor Corp. and Honda Motor Co used the suspect materials in hoods and doors.
  • Aircraft manufacture : Boeing is examining parts it gets through Subaru Corp which is Kobe Steel customer.
  • Trains manufacture : Hitachi Ltd has exported to the U.K. contained compromised metal as well as bullet trains in Japan.

The number of firms which have been affected by its data fabrication scandal has gone up to 500.

Where is Japanese quality and pride?

I was so shocked by this news. The strength of Japanese companies is trust and high reputation based on high quality and fairness. But Kobe seriously ruined the trust of Japanese quality.

I think the moral of employees has been lowering and the number of people who have selfish motivation has been increasing. We have to rethink about the relationship between company and employees for improving the loyalty.


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