Risk of Losses Due to Product Defects and Quality Issues
First written in FY2017. 2 of 6 entries say "Materialised", first in FY2020-Q2. Latest entry: FY2024.
The whole theme swung hardest in 2026: 11 of 57 companies on the "Worse" side.
- FY2024MitigatedAnnual report
「In addition to our domestic production facilities, we ensure product quality that meets market requirements and quality standards in each country by establishing appropriate quality control systems at overseas production facilities as well, including operating ISO9001 or quality systems suited to local conditions. If an unforeseen event occurs, it is promptly reported to the Executive Officers' Meeting and the Quality Assurance Committee, and the quality assurance division will promptly take necessary measures, including recalls.」
Quality systems are operated at domestic and overseas production facilities, with a defined system for reporting to the Quality Assurance Committee and taking prompt measures, including recalls. - FY2023MitigatedAnnual report
「In addition to our domestic production facilities, we ensure product quality that meets market requirements and quality standards in each country by establishing appropriate quality control systems at overseas production facilities as well, using methods for promoting ISO9001 and other measures.」
Based on past market recall cases, quality control systems were established at domestic and overseas production facilities, and a system for rapid response, including recalls, was specified. - FY2020-Q3MaterialisedAnnual report
「Market response costs ― ※ 52,532」
Market recalls, inspections and replacements were carried out for some compressor products of an Asian consolidated subsidiary, and ¥52,532 thousand in market response costs was recorded as an extraordinary loss. - FY2020-Q2MaterialisedAnnual report
「Market response costs 83,332 The company reasonably estimated the costs required for inspections and replacements of the products concerned in connection with market recalls and other measures involving certain compressor products manufactured and sold by an Asian consolidated subsidiary, and recorded the amount as an extraordinary loss.」
Market recalls, inspections and replacements were carried out for certain compressor products of an Asian consolidated subsidiary, and ¥83 million in market response costs was recorded as an extraordinary loss. - FY2019RestatedAnnual report
「The Group takes the utmost care to ensure product quality under a quality assurance system based on ISO9001. However, if a defect occurs, the Group may incur liability for damages arising from the defect that are not covered by product liability insurance.」
While describing the quality assurance system based on ISO9001, the company reconfirmed the risks of damages, recall and replacement costs if defects occur. - FY2017First statedAnnual report
「If a defect occurs, the company may incur liability for damages arising from the defect that are not covered by product liability insurance. It may also incur significant costs for handling claims within the Group, product recalls and replacements.」
The risks of liability for damages arising from product defects, claim handling, recall and replacement costs, and damage to the company’s image are disclosed.