Mitsubishi Electric whose refrigerators and air conditioners are widely sold at Harvey Norman is facing another scandal after it was revealed that their factories have been cutting corners in the manufacture of Mitsubishi products and that they cheated on quality control inspections and that the design of products was lacking.
Mitsubishi also manufacture trains that are in service in Australia they also sell both consumer and commercial motor vehicles.
A recent audit revealed that the Japanese Company cheated on inspections and engaged in “bad behaviour” at 70% of its factories in Japan and that management totally disregarded procedures leading to problems with products manufactured by the Company.
The Chairman of the Company has already quit with observers claiming that the problem has been pandemic and the actions of management at Mitsubishi points to deep-seated problems at one of Japan’s leading industrial groups.
The latest report, which is one of three damming reports revealed 101 additional cases, bringing the total to 148 cases of questionable action by management who appear to have cut Q&A corners in an effort to cut costs.
Manufacturing operational problems were discovered at 16 of the company’s 22 domestic factories.
Quality control lapses included design faults across a wide range of products including automobile components, appliance manufacturing including air conditioning, elevators and electric power systems.
Misconduct was found at the design stage, as well as in quality inspections, according to the report.
“Procedures were disregarded, with the justification that ‘it’s fine so long as there are no substantial quality issues,'” said Hiroshi Kimeda, the lawyer chairing the investigative committee.
Nikki Asia reported that the probe revealed that “there were many people who thought nothing was wrong with the situation,” Kimeda said.
Deliberate manipulation was uncovered in 66 cases, and managers were aware of such cheating in 15 of them. Some may involve violations of laws and regulations, according to the report.
The investigation by an independent committee has yet to examine nearly 20% of matters requiring a closer look and this investigation is not expected to be completed until the second half of the year.
A number of quality control scandals have emerged at Mitsubishi Electric since 2018. In June 2021, improper checks of rail car equipment were revealed at a plant in Nagasaki Prefecture.
The investigative committee was established the following month.
“We are fully cooperating with the investigation to find the true causes, and we intend to conduct thorough reforms,” President and CEO Kei Uruma told a news conference yesterday.
Recently a Mitsubishi Express van – based on a Renault Traffic – was axed in Australia after just three years and fewer than 3000 sales, as the relationship between Mitsubishi and Renault hit a bump over the urgent need for safety improvements.
Mitsubishi Australia have not commented on the latest report.