Repair Costs and Product Liability Arising from Product Defects
First written in FY2017. 2 of 7 entries say "Mitigated", first in FY2018. Latest entry: FY2025.
The whole theme swung hardest in 2026: 11 of 57 companies on the "Worse" side.
- FY2025MitigatedAnnual report
「In addition, to establish an environment focused on quality, the Company will establish a Quality Division and work to improve product quality globally by strengthening and reviewing its quality management system.」
As a response to product defect risks, the establishment of a Quality Division and measures to strengthen and review the global quality management system were added. - FY2023MaterialisedAnnual report
「As a result of one-off costs, including increased transportation costs to North America and costs related to addressing quality defects in Thailand, in addition to sudden production fluctuations caused by semiconductor shortages, higher resource prices and the impact of lockdowns in China,」
Costs related to addressing quality defects in Thailand were actually incurred and affected full-year performance. The descriptions of product defect risks and mitigation measures through the quality assurance system continue. - FY2023-Q3MaterialisedAnnual report
「Although sales were ¥24,038 million, up 12.7% year on year, operating profit was ¥1,231 million, down 29.7% year on year, due to costs related to addressing defects in Thailand and other factors.」
Costs related to addressing defects in Thailand were actually incurred, and operating profit in Asia declined 29.7% year on year. The cost-bearing risk associated with product defects has materialized in actual results. - FY2022RestatedAnnual report
「The Company has obtained IATF16949:2016 certification and established quality management and quality assurance systems to mitigate the risk of product defects.」
The risks of recall costs and liability for damages in the event of product defects, together with mitigation measures through IATF16949:2016 certification and the quality assurance system, continue to be described. - FY2019RestatedAnnual report
「In the automotive parts-related business, the Company has obtained certification under IATF6949:2016, the globally standardized quality management and assurance standard for the automotive industry, and has established quality management and quality assurance systems to provide customers with satisfactory products through a globally applicable quality assurance system. If a defect occurs in a product manufactured and sold by the Group, the Group will bear a share of the recall costs incurred by the customer automaker in proportion to its responsibility.」
While the response through IATF6949:2016 certification and the quality assurance system continues to be described, the risks of bearing recall costs and liability for damages in the event of defects also remain. - FY2018MitigatedAnnual report
「In the automotive parts-related business, the Company has obtained certification under IATF6949:2016, the globally standardized quality management and assurance standard for the automotive industry, and has established quality management and quality assurance systems to provide customers with satisfactory products through a globally applicable quality assurance system,」
While the risks of recall costs and liability for damages in the event of product defects continue to be recognized, the quality assurance system and IATF6949:2016 certification were cited as measures to address them. - FY2017First statedAnnual report
「If a defect occurs in a product manufactured and sold by the Group, the Group will bear a share of the recall costs incurred by the customer automaker in proportion to its responsibility.」
The possibility of bearing recall costs and liability for damages in the event of product defects was indicated, together with responses through ISO/TS16949 certification, the quality assurance system and product liability insurance.