The dark cloud that hangs over the car industry insists on not going away. After the recall of defective Takata airbags, the emissions scandal − whose shock waves are still propagating through the car industry − not even the metal that is used in our cars has been spared.
Kobe Steel, a Japanese colossus with more than 100 years of existence, admitted to having falsified the data concerning the specifications of steel and aluminum supplied to the automobile industry, aeronautics and even the famous Japanese high-speed trains.
The problem
In practice, Kobe Steel assured its customers that the metals met the requested specifications, but the reports were falsified. At issue is the durability and strength of the materials, supplied to more than 500 companies in the last 10 years.
These falsifications essentially took place in the quality controls and certificates of conformity issued. A conduct that was admitted by the company itself, in a public apology − which can be read here.
The scope of this scandal is not yet known. To what extent do the steel and aluminum supplied by Kobe Steel deviate from the specifications required by customers? Has there ever been a fatality resulting from the collapse of a fraudulent metallic element? It is not known yet.
The affected companies
As we mentioned earlier, this scandal did not only affect the car industry. The aeronautical industry was also affected. Companies like Airbus and Boeing are on Kobe Steel's customer list.In the car industry, there are names as important as Toyota and General Motors. The involvement of Honda, Daimler and Mazda is yet to be confirmed, but other names may come up. According to Automotive News, Kobe Steel's metals may have been employed in a multitude of components, including engine blocks.
It's still early
The concern of the brands involved is at least reasonable. But for now, it is unknown whether metals with lower specifications and quality are compromising the safety of any model or not.
However, Airbus has already gone public claiming that, so far, it has not found any evidence that its aircraft have any element that jeopardizes its integrity.
What's the next chapter?
Shares in Kobe Steel plummeted, was the market's first reaction. Some analysts put forward the possibility that this 100-year-old company, one of Japan's metallurgy giants, might not resist.
Customers' claims for damages could jeopardize the entire Kobe Steel operation. Given the potential number of vehicles affected, this scandal could turn out to be the biggest ever in the automotive industry.