Mitsubishi Electric CEO to quit over long-running data deceit
Reuters
Published Jul 02, 2021 03:34AM ET
Updated Jul 02, 2021 09:20AM ET
By Tim Kelly
TOKYO (Reuters) - Mitsubishi Electric (OTC:MIELY)'s CEO said he will step down to take responsibility for "three decades of systematic deceit" during which the Japanese firm falsified inspection data for air conditioners and brake compressors used in trains.
The admission by Mitsubishi, whose products range from air conditioners and vacuum cleaners to industrial printers and satellites, further dents Japan's reputation for high-quality manufacturing, already tarnished by other cases of companies falsifying or covering up test data.
"I am shocked by this," Takeshi Sugiyama told a news conference, at which he apologised for the falsification and promised to appoint a successor as early as this month once he had helped coordinate the company's response to the problem.
Sugiyama, who became CEO in 2018 and has been with Mitsubishi for more than four decades, said on Friday he regretted not informing shareholders at its annual meeting on June 29.
Mitsubishi management was aware of the air conditioner data problem two weeks before and knew about the air compressor falsifications the day before shareholders met, but chose not to release the information until June 30, he said.
The latest corporate scandal comes amid heightened concern over corporate governance in Japan after an investigation found managers at Toshiba (OTC:TOSYY) Corp, another well-established conglomerates, had colluded with the trade ministry to pressure foreign shareholders.
Japan's economy and trade minister, Hiroshi Kajiyama, said earlier that the government would act if it found that Mitsubishi had broken any laws or regulations.
Mitsubishi said the equipment supplied with falsified inspection data posed no safety risk, and although it breached contracts with customers, did not break any laws.
The company said it would release a full report in September, alongside measures to deal with the problem.
In the 35 years that Mitsubishi falsified inspection data, it supplied 84,600 air conditioning units to 80 rail companies.
It said it shipped 1,500 compressors, used in train brakes and doors, including in Japan's high-speed bullet trains, to 20 mostly domestic companies.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.