Japanese prosecutors charge Kobe Steel in fake data scandal

Japanese prosecutors have charged major steelmaker Kobe Steel with violating laws overseeing competition in a massive faking of product data.

Japanese prosecutors charge Kobe Steel in fake data scandal

Japanese prosecutors have charged major steelmaker Kobe Steel with violating laws overseeing competition in a massive faking of product data.

Kobe, which has repeatedly apologised for the practice, said in a statement that it took the allegations seriously and was working to prevent a recurrence.

"We once again deeply apologise," it said, without elaborating on specific charges. "The entire Kobe Steel Group is working together sincerely."

The systematic misconduct spanned years, affecting products sent to more than 680 companies, including aluminium castings and copper tubes for cars, aircraft, appliances and trains.

The scandal, which surfaced last year, has set off a class-action lawsuit and an investigation in the US.

Kobe has said a zealous pursuit of profits, unrealistic targets and an insular corporate culture were behind the scandal.

There have been no reports of accidents or injuries related to the fake data.

Charges were not filed against any individuals, although the company has said managers who knew of the wrongdoing intentionally looked the other way.

The systematic faking of data took place at various plants throughout Japan, according to the prosecutors and the company. Kobe launched an internal investigation and released the findings earlier this year.

The scandal was a major embarrassment for a famous brand in a nation built on quality "monozukuri", a phrase likening manufacturing to a craft or a science.

Kobe has promised each employee will return to "the roots of monozukuri" to win back trust and prevent a recurrence.

If found guilty in a court, the company could be fined. It is not clear how much.

The chief executive and several other executives resigned over the scandal, and some managers took pay cuts.

Quality control woes have been rife at other top Japanese brands, including Nissan, which has acknowledged that illegal vehicle inspections occurred for years at its plants in Japan.

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