Costs Arising from Quality Issues and Large-Scale Recalls
First written in FY2016. 2 of 6 entries say "Materialised", first in FY2019. Latest entry: FY2026.
Suzuki Motor moved to the "Worse" side of this theme in 2019, 4 years before the typical company in this theme (2023).
The whole theme swung hardest in 2025: 13 of 35 companies on the "Worse" side.
13 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「This was implemented to make estimates that are more reasonable and consistent with actual conditions, based on the continued implementation of measures to improve the quality control system carried out in the past, the recent downward trend in repair costs, and the accumulation of sufficient historical data required to apply a new estimation method reflecting the effects of those improvement measures. … As a result of the change in the estimation method, the provision for product warranties decreased by ¥10,961 million at the end of the current consolidated fiscal year.」
The company changed its method for estimating the provision for product warranties in light of continued improvements to its quality control system and the downward trend in repair costs, resulting in a ¥10.961 billion decrease in the provision. - 2026-05-25MitigatedGeneral Meetings of Shareholders
「This was carried out to develop estimates that are more rational and better aligned with actual conditions, based on the continued implementation of measures to improve the quality control system carried out in the past, the recent downward trend in repair costs, and the sufficient accumulation of actual performance data required to apply a new estimation method reflecting the effects of those improvement measures.」
Changed the measurement method for the product warranty provision from one centered on estimates for individual reported cases to comprehensive measurement based on historical performance data. The change reduced the product warranty provision by ¥10,961 million, indicating the effects of quality improvement measures and the downward trend in repair costs. - FY2025WorsenedAnnual report
「However, quality requirements associated with new technologies such as electrification and automated driving are becoming more complex and demanding.」
The company specified the increasing complexity and sophistication of quality requirements associated with new technologies such as electrification and automated driving as new risk factors for quality issues and recall risk. - FY2020MaterialisedAnnual report
「Quality-related costs had a significant impact on results, accounting for 1.4% of consolidated sales in the fiscal year ended March 2020.」
Costs related to quality assurance, recalls and other matters accounted for 1.4% of consolidated sales in the fiscal year ended March 2020, and their impact on results continued. - FY2019MaterialisedAnnual report
「The company recorded ¥81,329 million in costs for measures relating to final inspections as an extraordinary loss in connection with recalls and other measures relating to improper handling during final inspections.」
Quality and final inspection risks materialized in the form of recalls and an extraordinary loss of ¥81.329 billion. - FY2016First statedAnnual report
「If the Group conducts a major recall to ensure customer safety and incurs substantial costs, this could adversely affect its business results and financial condition.」
The company discloses the possibility of product defects and recall costs while prioritizing product safety.