Risks of Product Defects, Product Liability, and Damage to Social Reputation
First written in FY2017. 7 of 15 entries say "Materialised", first in FY2019-Q3. Latest entry: 2026-08-07.
The whole theme swung hardest in 2026: 12 of 60 companies on the "Worse" side.
- 2026-08-07MitigatedResults
「製品保証引当金 138 122」
製品保証引当金が前連結会計年度末の138百万円から122百万円へ減少している。 - FY2026MitigatedAnnual report
「Provision for product warranties ¥181 million ¥138 million」
The provision for product warranties decreased from ¥181 million at the end of the previous fiscal year to ¥138 million. - 2026-05-29MitigatedRevisions to earnings forecasts
「製品保証引当金 181 138」
製品保証引当金が前期末の181百万円から138百万円へ減少している。 - FY2026-H1MitigatedAnnual report
「Provision for product warranties 181 158」
The provision for product warranties decreased from ¥181 million at the end of the previous consolidated fiscal year to ¥158 million. - FY2025MitigatedAnnual report
「Product defects may increase quality-assurance costs, reduce confidence in the quality of the Group’s products and lead to lower product demand. Accordingly, the Group recognizes the significance of quality-related risks, works continuously to raise quality awareness, and seeks to ensure product quality by introducing systems that provide end-to-end visibility from procurement through production, logistics and sales.」
The company continues to recognize product quality risks and describes its response through a system providing end-to-end visibility from procurement through sales. The provision for product warranties decreased from ¥227 million to ¥181 million. - FY2022MitigatedAnnual report
「Provision for product warranties ¥275 million ¥218 million」
The provision for product warranties related to product quality and product liability decreased from ¥275 million at the end of the previous fiscal year to ¥218 million. - FY2022-Q3MitigatedAnnual report
「Settlement-related costs 19 15」
Settlement-related costs related to product liability and the class action decreased from ¥19 million in the same period of the previous year to ¥15 million. - FY2021MaterialisedAnnual report
「Provision for product warranties ¥275 million」
The company recorded a provision for product warranties of ¥275 million at the end of the current fiscal year in connection with product quality and product liability. - FY2021-Q3MaterialisedAnnual report
「Settlement-related costs 74 19」
Settlement-related costs of ¥19 million related to product liability and the class action have been recorded as an extraordinary loss for the nine-month period ended in the third quarter of the current fiscal year, and the related burden continues to be reflected in results. - FY2020MaterialisedAnnual report
「Extraordinary loss increased to ¥2.934 billion from ¥670 million in the previous consolidated fiscal year. This was mainly due to an increase in impairment losses and the recognition of an expense related to the provision for product warranties during the current consolidated fiscal year.」
The company recorded ¥678 million in provision expenses for product warranties as a product quality-related cost, indicating that the burden associated with product liability and quality risks has materialized in its results. - FY2020-Q3MaterialisedAnnual report
「Settlement-related costs 496 74」
Settlement-related costs of ¥74 million related to product liability and the class action have been recorded as an extraordinary loss for the nine-month period ended in the third quarter of the current fiscal year. - FY2020-Q2MaterialisedAnnual report
「Settlement-related costs — 61」
Settlement-related costs of ¥61 million related to product liability and the class action have been recorded as an extraordinary loss for the six-month period ended in the second quarter of the current fiscal year. - FY2020-Q1MaterialisedAnnual report
「Settlement-related costs — 44」
Settlement-related costs of ¥44 million related to product liability and the class action have been recorded as an extraordinary loss for the current quarter. - FY2019-Q3MaterialisedAnnual report
「The Company and its U.S. subsidiary had been subject to a class action in the United States concerning the sale of certain automotive-related products. Although the Company and its subsidiary do not admit liability for damages or other claims, they reached an agreement in principle to settle the case after comprehensively considering the potential increase in costs and other effects on management from prolonged litigation. The settlement will be formally finalized following court approval.」
In connection with product defects and product liability previously identified as risks, a class action was actually filed in the United States and an agreement in principle to settle was reached. Settlement-related costs of ¥496 million have been recorded as an extraordinary loss, although the company states that it does not admit liability for damages or other claims. - FY2017First statedAnnual report
「There is a risk of unexpected product defects. In addition, social conditions and amendments to laws and regulations have expanded the scope of liability for defects and the risk of compensation claims.」
While stating that quality is prioritized in design and manufacturing, the company identifies the risk that product defects, liability for compensation and reputational damage could affect performance and financial position.