Product Defects, Recalls and Product Liability Risk
First written in FY2020. 4 of 18 entries say "Mitigated", first in FY2024. Latest entry: FY2026.
The whole theme swung hardest in 2026: 11 of 57 companies on the "Worse" side.
- FY2026Added product liability insurance coverage and the coverage limitAnnual report
「Our group has taken out product liability insurance and other coverage, but there is no guarantee that all losses, including damages, will be covered.」
While disclosing insurance coverage as a response to product defects and product liability, the company states that there is no guarantee that losses will be fully compensated. - 2026-05-28MitigatedGeneral Meetings of Shareholders
「At the end of the consolidated fiscal year under review, the balance of the provision for product warranties was ¥116,706 thousand.」
The provision for product warranties decreased from ¥125,071 thousand in FY2025 to ¥116,706 thousand. The disclosure continues to mention the possibility of future costs related to addressing defects in specific products. - FY2025MitigatedAnnual report
「Product warranty provision ¥133.476 million ¥125.071 million」
The balance of the product warranty provision decreased from ¥133.476 million at the end of the previous fiscal year to ¥125.071 million. No settlement payment related to product liability, which was recognized in the previous fiscal year, arose during the current fiscal year. - FY2025-H1MitigatedAnnual report
「Product warranty provision ¥133.476 million ¥119.710 million」
The balance of the product warranty provision decreased from ¥133.476 million at the end of the previous consolidated fiscal year to ¥119.710 million at the end of the interim period. - FY2024MitigatedAnnual report
「Product warranty provision ¥153.065 million ¥133.476 million」
The balance of the product warranty provision decreased from ¥153.065 million at the end of the previous fiscal year to ¥133.476 million. No settlement payment related to product liability, which was recognized in the previous fiscal year, arose during the current fiscal year. - FY2024-Q3Updated the product warranty provision balance for the third quarterAnnual report
「Product warranty provision ¥153.065 million ¥136.871 million」
The balance of the product warranty provision decreased from ¥153.065 million at the end of the previous consolidated fiscal year to ¥136.871 million at the end of the third quarter. - FY2024-Q2Updated the product warranty provision balance for the first halfAnnual report
「Product warranty provision ¥153.065 million ¥155.402 million」
The balance of the product warranty provision increased from ¥153.065 million at the end of the previous consolidated fiscal year to ¥155.402 million at the end of the second quarter. - FY2024-Q1Updated the product warranty provision balance for the first quarterAnnual report
「Product warranty provision ¥153.065 million ¥136.163 million」
The balance of the product warranty provision decreased from ¥153.065 million at the end of the previous consolidated fiscal year to ¥136.163 million at the end of the first quarter. - FY2023Updated full-year settlement payment related to product liabilityAnnual report
「This arose in connection with the resolution to liquidate AICHI AUS PTY LTD, our consolidated subsidiary. / This represents a settlement payment for product liability at Zhejiang Aichi Engineering Machinery Co., Ltd., a consolidated subsidiary.」
A settlement payment of ¥104.011 million for product liability at Zhejiang Aichi Engineering Machinery Co., Ltd. was recognized as an extraordinary loss for the full year, disclosing the actual loss associated with product quality and product liability risks. - FY2023-Q3MaterialisedAnnual report
「Damages ¥103.541 million / This represents a settlement payment for product liability at Zhejiang Aichi Engineering Machinery Co., Ltd., a consolidated subsidiary. / Product warranty provision ¥228.271 million ¥176.379 million」
A settlement payment of ¥103.541 million for product liability at Zhejiang Aichi Engineering Machinery Co., Ltd. was recognized as an extraordinary loss, indicating that the risks associated with product defects and product liability had materialized as an actual loss. The balance of the product warranty provision was ¥176.379 million at the end of the third quarter. - FY2023-Q2Updated the product warranty provision balance for the first halfAnnual report
「Product warranty provision 228,271 183,339」
The product warranty provision balance declined from ¥228.271 million at the end of the previous consolidated fiscal year to ¥183.339 million at the end of the second quarter. - FY2023-Q1Updated the product warranty provision balance for the first quarterAnnual report
「Product warranty provision 228,271 185,218」
The product warranty provision balance declined from ¥228.271 million at the end of the previous consolidated fiscal year to ¥185.218 million at the end of the first quarter. - FY2022Updated the product warranty provision balanceAnnual report
「Product warranty provision 294,302 228,271」
The product warranty provision balance declined from ¥294.302 million at the end of the previous consolidated fiscal year to ¥228.271 million. The company continues to recognize the risk that additional provisions may be required in connection with product defects. - FY2022-Q3Updated the product warranty provision balance for the third quarterAnnual report
「Product warranty provision 294,302 242,137」
The product warranty provision balance declined from ¥294.302 million at the end of the previous consolidated fiscal year to ¥242.137 million at the end of the third quarter. - FY2022-Q2Updated the product warranty provision balance for the first halfAnnual report
「Product warranty provision 294,302 253,893」
The product warranty provision balance declined from ¥294.302 million at the end of the previous consolidated fiscal year to ¥253.893 million at the end of the second quarter. - FY2022-Q1Updated the product warranty provision balance for the first quarterAnnual report
「Product warranty provision 294,302 268,970」
The product warranty provision balance declined from ¥294.302 million at the end of the previous consolidated fiscal year to ¥268.970 million at the end of the first quarter. - FY2021Added the product warranty provision and estimation methodAnnual report
「The product warranty provision is classified into a provision for free repairs performed during the warranty period and a provision for free repairs to address defects in specific products. If warranty obligations arise from product defects not anticipated in estimating the provision, or if warranty costs exceed the provision, additional recognition of the product warranty provision may be required.」
The company recognized a product warranty provision of ¥294 million and disclosed an estimation method based on historical rates, the number of units covered, estimated repair costs per unit, the implementation rate, and the allocation of responsibility with suppliers. - FY2020First statedAnnual report
「Although systems are in place to respond fully if an unexpected product defect occurs that could lead to a large-scale recall or product liability, substantial costs could arise, reducing confidence in and the reputation of our products and potentially affecting the group's operating results and financial position.」
While emphasizing product safety and efficiency, the company describes for the first time as a separate item the risk that unexpected defects could lead to large-scale recalls or product liability.