Another big Japanese company has admitted behaving badly... and it's already paying the price.
Shares in Kobe Steel (KBSTY) slumped 22% in Tokyo on Tuesday after the company admitted faking data about the quality of some of its aluminum and copper products.
Investors ditched the stock after the firm said 4% of products shipped over the 12 months to August 31 didn't comply with specifications agreed with customers, including Toyota (TM), Honda (HMC) and Nissan (NSANF).
Kobe is Japan's third biggest steel maker, with annual sales of $15 billion. Tuesday's market crash wiped nearly $1 billion off its stock market value.
In a statement, the company said it had begun contacting customers to explain that products including thousands of tons of aluminum and copper strips did not meet agreed specifications.
They were shipped to carmakers for use in doors and hoods, and to aerospace firms for use in window frames.
Kobe said the "improper conduct" came to light following its own inspections and emergency audits. Certificates had been improperly rewritten by employees to make it look as if the products met specifications, it said
Metal was used in cars and planes
A Toyota spokeswoman confirmed that it had found Kobe materials from the period in question in "hoods, rear doors and peripheral areas." The carmaker was still trying to determine which models were impacted, she added.
Spokesmen for Honda (HMC) and Nissan (NSANF) also confirmed they had used Kobe materials with falsified data in their cars but were still assessing the consequences.
Mitsubishi Heavy Industries (MHVYF) said that it had used affected Kobe parts in its Mitsubishi Regional Jet, a narrow-body passenger plane, but a spokesman said checks had confirmed that safety was not compromised.