Toray, latest victim in data-falsification scandal

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Top carbon fiber manufacturer Toray has become the latest company to be hit by a data falsification scandal.

The fallout adds Toray to a growing list of Japanese companies that have been embroiled in data tampering allegations.

Experts say the recent wave of scandals reflects the problems that exist in Japan’s manufacturing industry, noting that the country needs to launch a serious investigation.

Toray admitted on Tuesday to 149 cases of quality-related data falsification spanning a period of eight years. In an emergency press conference, the company's president said that he had known about the data-manipulating for about a year, but the company had no intention of making the matter public because no safety problems had been found.

The scandal only came to light following a whistleblower's comments posted in online chat rooms.

While a company spokesperson said, “Only when the problems directly affect our consumers, otherwise we don't feel obligated to reveal all the data-changing to the public,” Li Yong, a senior fellow from the China Association of International Trade, said that Japan lacks strenuous rules and regulations to punish this kind of behavior.

“They are cheating their customers around the world,” Li said.

Japan's tire-maker Bridgestone and rubber-producer Yokohama have both confirmed they bought questionable products from Toray's subsidiary Toray Cord unit.

A spokesperson for the company revealed that some of the products also went into the Chinese market, but could not give any specific details.

The revelations come after a slew of Japanese companies have been hit by data-tampering scandals, including Kobe Steel and motor giants Nissan and Mitsubishi.

Japanese fear, in the long run, these incidents may damage people's trust in the country's manufacturing sector and "Made in Japan" on a broader scale.

Toray Industries' President Akihiro Nikkaku (L) and his executives bow their heads after a news conference in Tokyo, Japan, November 28, 2017. /VCG Photo

Data fabrication could become a major problem for Japanese manufacturers. In 2015, Japanese metal product producer Mitsubishi Materials admitted that three subsidies altered their production data of rubber seal and copper products from 2015 to 2017.

150 billion yen of contracts were affected, including some from the Ministry of Defense.

Just a month ago, car maker Subaru also admitted that an unlicensed inspector has been examining their cars for years, resulting in the recall of 2.5 million vehicles, the biggest recall in the company's history.

“Over-pursuit of profits” could be one of the reasons, according to Li, as the pressure for high profits may force companies to skip on workmanship and quality materials.

(CGTN’s Cyrus Ip also contributed to the story)

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