Product Defects and Recalls
First written in FY2016. 10 of 27 entries say "Worsened", first in FY2017. Latest entry: FY2026.
Furukawa Electric moved to the "Worse" side of this theme in 2016, 4 years before the typical company in this theme (2020).
The whole theme swung hardest in 2024: 3 of 6 companies on the "Worse" side.
8 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Product warranty provision: ¥6,321 million」
The balance of the product warranty provision decreased from ¥9,692 million at the end of the previous fiscal year to ¥6,321 million. Although risks related to automotive parts recalls and defects in the large-scale power project remain, no provision expense for product warranties was recorded during the fiscal year. - 2026-05-12MitigatedEarnings
「Product warranty provision 9,692 6,321」
The balance of the product warranty provision decreased from ¥9.692 billion at the end of the previous fiscal year to ¥6.321 billion. However, uncertainty remains regarding warranty costs related to automotive recalls and major power projects. - FY2025WorsenedAnnual report
「A defect occurred in a large-scale power project supplied in the past by the company through its subsidiary, and the company continued discussions with the customer. The company’s subsidiary and the customer agreed to replace the cables for the project and bear part of the related costs. Accordingly, the company recorded a provision of ¥4,170 million for costs expected to be required in the future.」
In addition to the existing automotive parts recalls and other matters, the defect in the large-scale power project resulted in an agreement on replacement and cost sharing. Total provision expense for product warranties was ¥6.1 billion, and the balance at the end of the fiscal year was ¥9,692 million. - FY2025-H1MaterialisedAnnual report
「These are costs incurred to address defects in certain lots of products shipped by the company’s consolidated subsidiary 古河電池㈱ between June 2023 and June 2024. Of the provision expense for product warranties, the amount expected to arise in the future has been recorded as a product warranty provision.」
In addition to the existing automotive parts recalls and other matters, defects occurred in certain lots of products shipped by 古河電池 between June 2023 and June 2024, and the company recorded ¥1.662 billion in provision expense for product warranties. - FY2024WorsenedAnnual report
「A defect occurred in part of a product supplied in the past for a large-scale power project, and the company has recorded a provision for repair costs that can currently be reasonably estimated. The cause of the defect and the scope of its impact are currently under investigation. Depending on the results, additional repair costs may arise, but at present it is difficult to reasonably estimate the amount of the impact.」
In addition to the existing automotive parts recalls, a product defect occurred in a large-scale power project supplied in the past, and repair costs were provided for. The balance of the product warranty provision also increased from ¥223.8 million at the end of the previous fiscal year to ¥526.4 million. - FY2024-Q3WorsenedAnnual report
「The company has recorded a provision for the estimated costs that can be reasonably estimated in response to a market recall involving vehicles incorporating automotive parts manufactured by a consolidated subsidiary. Additional costs may arise if a market recall is carried out for other purchasers of the parts, but at present it is difficult to reasonably estimate the amount of the impact.」
The provision for recall-related costs and the possibility of additional costs if market recalls are carried out for other purchasers remain in place. The balance of the product warranty provision increased from ¥223.8 million at the end of the previous fiscal year to ¥352.2 million. - FY2024-Q2WorsenedAnnual report
「The company has recorded a provision for the estimated costs that can be reasonably estimated in response to a market recall involving vehicles incorporating automotive parts manufactured by a consolidated subsidiary. Additional costs may arise if a market recall is carried out for other purchasers of the parts, but at present it is difficult to reasonably estimate the amount of the impact.」
The company continued to disclose the provision for recall-related costs and the possibility of additional costs arising if recalls are carried out for other purchasers. The balance of the product warranty provision increased from ¥223.8 million at the end of the previous fiscal year to ¥307.2 million. - FY2024-Q1WorsenedAnnual report
「The company has recorded a provision for the estimated costs that can be reasonably estimated in response to a market recall involving vehicles incorporating automotive parts manufactured by a consolidated subsidiary. Additional costs may arise if a market recall is carried out for other purchasers of the parts, but at present it is difficult to reasonably estimate the amount of the impact.」
The company continued to provide for recall-related costs and indicated that additional costs may arise if recalls are carried out for other purchasers. The balance of the product warranty provision increased from ¥223.8 million at the end of the previous fiscal year to ¥280.6 million. - FY2022MitigatedAnnual report
「There are no significant new matters.」
The balance of the product warranty provision decreased from ¥402.2 million in the previous fiscal year to ¥304.5 million, and the company disclosed that there were no significant new recall matters. - FY2021-Q3MitigatedAnnual report
「Separately from the above, a market recall had been carried out for vehicles incorporating automotive parts manufactured by a consolidated subsidiary of the company, but a settlement was reached. The company is currently discussing a claim for indemnification with the supplier that delivered the parts to the consolidated subsidiary. Losses related to the above recall have already been recognized in the financial statements.」
The global settlement and loss recognition for the recall involving TOKAI RIKA have been completed, and a settlement was also reached for the separate recall. Meanwhile, discussions with the supplier regarding a claim for indemnification are continuing. - FY2021-Q2MitigatedAnnual report
「The company and its consolidated subsidiary had been asked by the purchaser of the parts, TOKAI RIKA CO.,LTD., to cooperate in sharing part of the costs and had conducted negotiations. On 21 August 2020, the TOKAI RIKA Group and the company group reached a global settlement establishing the respective burdens of both parties. Losses related to the above recall have already been recognized in the financial statements. Separately from the above, a market recall has been carried out for vehicles incorporating automotive parts manufactured by a consolidated subsidiary of the company, and the company and its consolidated subsidiary are discussing the allocation of costs with the purchaser of the parts.」
A global settlement on the allocation of costs was reached for the existing recall involving TOKAI RIKA, and the related loss has been fully recognized. Meanwhile, discussions on sharing the costs of a separate recall are continuing. - FY2021-Q1WorsenedAnnual report
「A market recall has been carried out for vehicles incorporating automotive parts manufactured by a consolidated subsidiary of the company. In response to the company and its consolidated subsidiary being asked by the purchaser of the parts to bear the costs, the company recorded a provision for the amount expected to be required in the future.」
The company recorded ¥482.0 million in provision expense for product warranties while negotiations on sharing the costs of the automotive parts recall continued. - FY2020WorsenedAnnual report
「Separately from the above, a market recall has been carried out for vehicles incorporating automotive parts manufactured by a consolidated subsidiary of the company, and the company and its consolidated subsidiary have begun discussions with the purchaser of the parts regarding the allocation of costs.」
In addition to the existing U.S. litigation and settlement negotiations, the company disclosed that it had begun discussions with the purchaser regarding the allocation of costs for another automotive parts recall. - FY2020-Q3MitigatedAnnual report
「In addition, at the recommendation of the above-mentioned U.S. court in December 2019, the company plans to resume settlement negotiations shortly. Separately from the above, a market recall has been carried out for vehicles incorporating automotive parts manufactured by a consolidated subsidiary of the company. The company and its consolidated subsidiary were asked by the purchaser of the parts to bear the costs and conducted negotiations, reaching an agreement with the automaker on the allocation of the burden. Payments are being processed sequentially.」
Settlement negotiations are scheduled to resume regarding the U.S. recall litigation. For the separate recall, an agreement was reached on the allocation of costs, and payments are being processed. - FY2020-Q2MitigatedAnnual report
「Separately from the above, a market recall has been carried out for vehicles incorporating automotive parts manufactured by a consolidated subsidiary of the company. The company and its consolidated subsidiary were asked by the purchaser of the parts to bear the costs and conducted negotiations, reaching a basic agreement on the allocation of the burden.」
While the existing litigation in the United States continues, a basic agreement was reached with the purchaser on the allocation of costs related to a separate automotive parts recall. - FY2020-Q1RestatedAnnual report
「A market recall has been carried out for vehicles incorporating automotive parts manufactured by a consolidated subsidiary of the company. The company and its consolidated subsidiary were asked by the purchaser of the parts, TOKAI RIKA CO.,LTD. (hereinafter, “TOKAI RIKA”), to cooperate in sharing part of the costs and conducted negotiations, but no agreement was reached. In connection with this matter, American Furukawa, Inc., a consolidated subsidiary of the company, was sued in the Michigan state courts by TRAM, Inc. and TRMI, Inc., subsidiaries of TOKAI RIKA. The complaint was served on 15 June 2017 (local time), and the case is currently pending.」
The company reconfirmed that negotiations on sharing the costs related to the automotive parts recall failed to reach an agreement and that litigation in the United States remains pending. - FY2019RestatedAnnual report
「The company has recorded a provision for the estimated cost burden that can be reasonably estimated, but its consolidated results may be affected depending on the progress of future negotiations and litigation.」
The company reconfirmed that litigation in the United States and separate negotiations on sharing costs related to the automotive parts recall are continuing and that provisions have been recorded for costs that can be reasonably estimated. Provision expense for product warranties was ¥636.4 million for the fiscal year. - FY2019-Q3RestatedAnnual report
「The company has recorded a provision for the estimated cost burden that can be reasonably estimated, but its consolidated results may be affected depending on the progress of future negotiations and litigation. At present, however, it is difficult to reasonably estimate the amount of the impact.」
Regarding the automotive parts recall, the company reconfirmed the provision for the expected cost burden, the continuation of litigation and negotiations, and the difficulty of estimating the amount of the impact. - FY2019-Q2RestatedAnnual report
「The company has recorded a provision for the estimated cost burden that can be reasonably estimated, but its consolidated results may be affected depending on the progress of future negotiations and litigation. At present, however, it is difficult to reasonably estimate the amount of the impact.」
The company reconfirmed the provision for the automotive parts recall, the continuation of litigation and negotiations, and the difficulty of reasonably estimating the amount of the impact. - FY2019-Q1RestatedAnnual report
「In connection with this matter, American Furukawa, Inc., a consolidated subsidiary of the company, was sued in the Michigan state courts by TRAM, Inc. and TRMI, Inc., subsidiaries of TOKAI RIKA CO.,LTD. The complaint was served on 15 June 2017 (local time), and the case is currently pending.」
The company reconfirmed that litigation in the United States concerning the automotive parts recall remains pending and that it has also been asked to bear costs related to another recall. - FY2018WorsenedAnnual report
「The company recorded ¥7.2 billion as an extraordinary loss for the provision expense for product warranties related to the market recall of products incorporating automotive parts manufactured by a subsidiary and compensation for other products.」
The company recorded ¥7.2 billion in provision expense for product warranties related to recalls and other matters, increasing the balance of the product warranty provision from ¥15.9 billion at the end of the previous fiscal year to ¥22.8 billion. - FY2018-Q3WorsenedAnnual report
「Separately from the above, a market recall has been carried out for vehicles incorporating automotive parts manufactured by a consolidated subsidiary of the company, and the company and its consolidated subsidiary have been asked by the purchasers of the parts to bear the costs.」
In addition to the existing recall litigation, the company newly disclosed that purchasers had sought reimbursement for the costs of another automotive parts recall, expanding the potential burden associated with product defects. - FY2018-Q2RestatedAnnual report
「However, no agreement was reached, and a damages lawsuit has been filed in the United States by a subsidiary of the other company against a consolidated subsidiary of the Company. As the components were also delivered to countries outside the United States, legal proceedings may subsequently be initiated in other countries as well.」
The company reconfirmed that negotiations on sharing the costs related to the automotive parts recall failed to reach an agreement and that litigation in the United States remains ongoing, that legal proceedings may be initiated in other countries, and that provisions have been recorded for costs that can be reasonably estimated. - FY2018-Q1MaterialisedAnnual report
「However, no agreement was reached, and a damages lawsuit has been filed in the United States by a subsidiary of the other company against a consolidated subsidiary of the Company. As the components were also delivered to countries outside the United States, legal proceedings may subsequently be initiated in other countries as well.」
Negotiations on sharing the recall costs failed to reach an agreement, and a lawsuit was actually filed in the United States on 15 June 2017. Although the estimated amount of the cost burden that can be reasonably estimated has been provided for, the disclosure also states that legal proceedings may be initiated in other countries. - FY2017WorsenedAnnual report
「A market recall is under way for vehicles incorporating automotive components manufactured by a consolidated subsidiary of the Company. The Company and its consolidated subsidiary have been asked by customers to share part of the related costs, and, in light of the status of negotiations and other factors, the reasonably estimable amount has been recorded as a provision for product compensation.」
The Company recorded ¥13.1 billion in product compensation provision expense related to the recall and also disclosed that, after the filing date, legal proceedings were brought concerning responsibility for recall costs. - FY2017-Q2MaterialisedAnnual report
「A market recall is under way for vehicles incorporating automotive components manufactured by a consolidated subsidiary of the Company. The Company and its consolidated subsidiary have been asked by customers to share part of the related costs, and, in light of the status of negotiations and other factors, the reasonably estimable amount has been recorded as a provision for product compensation.」
The automotive component recall and negotiations with customers regarding the sharing of costs are ongoing, and the reasonably estimable amount was recorded as a provision for product compensation. - FY2016First statedAnnual report
「A market recall is under way for vehicles incorporating automotive components manufactured by a consolidated subsidiary of the Company. The Company and its consolidated subsidiary have been asked by customers to share part of the related costs, and negotiations are under way.」
An automotive component recall occurred, and the Company disclosed negotiations with customers regarding the sharing of costs.