Risk of Defects in New Products and Product Liability
First written in FY2016. 3 of 9 entries say "Materialised", first in FY2019. Latest entry: FY2025.
The whole theme swung hardest in 2026: 11 of 57 companies on the "Worse" side.
- FY2025RestatedAnnual report
「Following the acquisition of ISO9001 certification, we design and manufacture products in accordance with internationally recognized quality management standards and exercise great care in managing product quality. However, as we are focusing on developing new products, including our own products, there is no assurance that all products will remain free of defects in the future or that no costs associated with product liability claims or similar matters will arise.」
While conducting quality control, the disclosure reconfirms the remaining risks of defects in new products and product liability claims. - FY2023MitigatedAnnual report
「We will organize an internal quality assurance team serving as an independent third party, clarify internal control responsibilities relating to quality, and implement safety and security measures at each stage of the product life cycle, from the planning and development of products and services through disposal.」
As measures addressing the risks of product defects and product liability, the disclosure describes a quality assurance team, clarification of responsibilities, and safety and security measures covering the entire product life cycle. - FY2021MaterialisedAnnual report
「Regarding the telematics in-vehicle equipment products that we produce and sell, the possibility of defects was identified in some products. Accordingly, ¥119 million was recognized as an extraordinary loss in the nine-month period of the fiscal year in progress as the estimated cost of the voluntary recall of the affected products. We were taking steps toward resuming shipments, including revising the firmware and strengthening our internal framework to prevent recurrence. However, as stated in the notice titled “Notice Regarding Additional Recognition of Extraordinary Losses, Differences Between the Full-Year Consolidated Earnings Forecast and Actual Results, and Dividend of Surplus (No Dividend)” announced on 13 August 2021, shipments of the affected products from the following fiscal year onward are no longer expected. Accordingly, we decided to additionally recognize ¥116 million as an extraordinary loss for the total estimated costs arising from this development.」
In addition to the defect in and voluntary recall of the telematics in-vehicle equipment, shipments from the following fiscal year onward ceased to be expected, leading to the recognition of an additional ¥116 million extraordinary loss. - FY2021-Q3MitigatedAnnual report
「The cause of the issue has been identified as a problem with the firmware controlling the microcomputer installed in the product. We are currently revising the firmware and taking steps toward resuming shipments of the product. At the same time, we are strengthening our internal framework to prevent recurrence.」
The cause of the telematics in-vehicle equipment issue was identified as a firmware problem, and work is under way to revise the firmware, resume shipments and strengthen the internal framework to prevent recurrence. The impact on performance from the voluntary recall is still being incurred. - FY2021-Q2Implementation of a voluntary recall and materialization of its impact on performanceAnnual report
「In the IoT business, both net sales and segment profit declined year on year due to lower orders resulting from the voluntary recall of car-sharing in-vehicle equipment and telematics in-vehicle equipment conducted in October 2020, as well as higher depreciation of intangible assets and other factors.」
The risk of defects in telematics in-vehicle equipment materialized in the October 2020 voluntary recall, which affected performance through lower orders and lower sales and profit in the IoT business. - FY2021-Q1MaterialisedAnnual report
「As the possibility of defects was identified in some of the telematics in-vehicle equipment products that we produce and sell, we determined that the impact of the issue on driving could not be ruled out and decided to conduct a voluntary recall of the affected products.」
The risk relating to defects in new products and product liability materialized through the identification of possible defects in telematics in-vehicle equipment and the decision to voluntarily recall the affected products. The disclosure also states that additional costs could arise. - FY2019MaterialisedAnnual report
「We have recognized the estimated amount of costs related to product warranties expected to arise due to defects in some products delivered.」
Defects occurred in some products, and a provision for product warranties of ¥3.272 million was recognized as the estimated amount of product warranty costs. - FY2018RestatedAnnual report
「There is no assurance that all products will remain free of defects in the future or that no costs associated with product liability claims or similar matters will arise. If such events occur, they could adversely affect the performance of the Group.」
While conducting quality control based on ISO9001, the disclosure reconfirms the remaining risks of defects in new products and product liability claims. - FY2016First statedAnnual report
「As we are focusing on developing new products, including our own products, there is no assurance that all products will remain free of defects in the future or that no costs associated with product liability claims or similar matters will arise. If such events occur, they could adversely affect the performance of the Group.」
After explaining quality control based on ISO9001, the disclosure identifies the remaining risks.