The scandal over falsified inspection data has spread beyond Japan and affected hundreds of companies both at home and abroad. What impact would the fallout bring to Japan's broader manufacturing industry? Let's take a look. 

 

KOBE STEEL has been in operation for over a century. Currently, it produces 7.3 million tons of steel every year, ranking 53rd in the global iron & steel industry in terms of output. It also manufactures aluminum, cooper, titanium, which are commonly used in cars, aircrafts, rockets and defense equipments. Kobe steel is one of the few suppliers for certain cooper and aluminium components in the world. As its data-falsifying scandal explodes, more companies, including Ford, Honda, Toyota, are starting to review whether their products are affected. 

 

TOKYO RESIDENT It really should not happen. We are very proud of the Made in Japan brand. We really hope the good name of Japanese products could weather the storm and carry on.  

 

Kobe steel's deputy director admitted that they changed the data because they couldn't finish the required products by the contract date, and that has been happening for over a decade. Analysts say it is not an isolated case. There have been similar scandals break out in several well-known Japanese conglomerates, such as Toshiba and Mitsubishi Motors.  

 

TAKASHI OKUBO, ECONOMIST JMA Japan's advantage in high-tech has been gradually chipped away by other countries. Japanese companies want to defend its brand while chasing high profits. It also has something to do with the corporate culture. All these factors are crucial for a firm's survival. 

 

Analysts say that Kobe steel scandal is a big blow to the Japanese steel sector. The damage to the whole manufacturing industry is immeasurable.