Product Defect, Complaint and Recall Risk
First written in FY2016. 2 of 6 entries say "Restated". Latest entry: FY2026-H1.
The whole theme swung hardest in 2025: 13 of 34 companies on the "Worse" side.
48 other companies' latest entry also says "Restated".
- FY2026-H1RestatedAnnual report
「Improvement activities, including more sophisticated mold management, improvements to finishing processes and measures to prevent defective products from reaching customers, reduced air freight in the immediate term. However, air freight shipments increased compared with the previous interim consolidated accounting period because ocean freight transit times lengthened and air freight rates rose.」
In the Frontier business, improvement activities covering mold management, finishing processes and the prevention of defective products reaching customers have continued. Although air freight declined in the immediate term as a result, air freight costs caused by longer ocean freight transit times were a factor contributing to the loss. quantified: false; materialized: true. - FY2025AdvancedAnnual report
「As measures taken by the Group, each plant identifies incidents that could lead to product defects and considers countermeasures, while continuing to implement actions under the quality improvement plan. We also maintain domestic and overseas product liability insurance to mitigate the impact of compensation costs and other expenses if a third party suffers damage, and seek to avoid risks by obtaining recall insurance as warranted by transaction conditions.」
In addition to the existing product liability and recall insurance, the disclosure specifies the identification of defect-related incidents at each plant, consideration of countermeasures and ongoing action under quality improvement plans. - FY2021MitigatedAnnual report
「We maintain domestic and overseas product liability insurance to mitigate the impact of compensation costs and other expenses if a third party suffers damage. We also seek to avoid risks by obtaining recall insurance as warranted by transaction conditions.」
In addition to product liability insurance, the disclosure specifies recall insurance, obtained depending on transaction conditions, as a risk response measure. - FY2020MitigatedAnnual report
「As a measure taken by the Group, we maintain product liability insurance to mitigate the impact of compensation costs and other expenses if a third party suffers damage, and we work to avoid such risks.」
The disclosure specifies product liability insurance as a measure to mitigate the impact of compensation costs arising from product defects. - FY2017RestatedAnnual report
「If an accident caused by a product defect, a claim or a recall were to occur, substantial product compensation costs and other expenses could be incurred. A shift in orders to other companies could also affect the Group's operating performance and financial position.」
The disclosure reiterates the risk of compensation costs and lost orders resulting from product defects, claims and recalls. - FY2016First statedAnnual report
「If an accident caused by a product defect, a claim or a recall were to occur, substantial product compensation costs and other expenses could be incurred. A shift in orders to other companies could also affect the Group's operating performance and financial position.」
The disclosure covers compensation costs, the shift of orders and the potential impact on operating performance and financial position.