Risk of product quality defects and claims
First written in FY2016. 2 of 5 entries say "Materialised", first in FY2020-Q1. Latest entry: FY2027-H1.
The whole theme swung hardest in 2026: 13 of 61 companies on the "Worse" side.
- FY2027-H1MitigatedAnnual report
「Segment profit (operating profit) was ¥674 million, up 500.7% year on year, driven by revised selling prices, a lower defect rate, cost-structure reforms and improved profitability at the Mexican subsidiary, among other factors.」
An improvement in the defect rate is described, indicating that measures to address previously identified quality defect and defect-rate risks are progressing. - FY2020-Q2MaterialisedAnnual report
「Although sales exceeded the previous year's level by pursuing these initiatives, profit remained under severe pressure due to delays in price revision negotiations in Japan and the persistently high defect rate.」
The persistently high defect rate in domestic production has led to difficulties in terms of profitability. - FY2020-Q1MaterialisedAnnual report
「Although sales were secured by pursuing these initiatives, profit remained under severe pressure due to the persistently high defect rate for automotive parts produced domestically, among other factors.」
The disclosure states that a persistently high defect rate actually occurred in domestically produced automotive parts, leading to pressure on profit. - FY2017RestatedAnnual report
「The company regards quality control and environmental management as among its highest management priorities, including through obtaining ISO9001 and ISO14001 certifications. It has taken all possible measures to ensure product quality, including strengthening production processes and final inspections, but recognizes that it is difficult to completely eliminate all quality risks in product development and manufacturing over the long term.」
While strengthening quality control and process inspections, the company continues to recognize that quality risks cannot be completely eliminated. - FY2016First statedAnnual report
「We recognize that it is difficult to completely eliminate all quality risks in product development and manufacturing for the future. If claims or defects arise, the Group’s performance could be affected through a decline in social credibility, suspension of transactions and compensation payments, among other consequences.」
The company places importance on quality control, while stating that quality risks cannot be completely eliminated.