Compensation Risk Associated with Product Defects and Large-Scale Recalls
First written in FY2016. 19 of 33 entries say "Restated". Latest entry: 2026-08-04.
The whole theme swung hardest in 2026: 11 of 57 companies on the "Worse" side.
- 2026-08-04MitigatedEarnings
「1 April 2026 9,099 Increase during the period － Decrease during the period (used for its purpose) △273 Decrease during the period (reversal) － Foreign currency translation differences 97 30 June 2026 8,923」
The provision for product warranties decreased from ¥9,099 million at the end of the previous fiscal year to ¥8,923 million. The company continues to state that additional recognition or reversal may be required. - FY2026WorsenedAnnual report
「31 March 2026 ¥9,099 million」
The product warranty provision increased from ¥7,358 million at the end of the previous fiscal year to ¥9,099 million. Compensation risks related to product defects and modification costs remain, and the provision balance has increased again. - FY2026-H1MitigatedAnnual report
「Product warranty provision 1 April 2025 ¥7,358 million Increase during the period ¥448 million Decrease during the period (utilized) △¥1,765 million Decrease during the period (reversal) — Foreign currency translation difference △¥1 million 30 September 2025 ¥6,041 million」
The product warranty provision decreased from ¥7,358 million at the beginning of the period to ¥6,041 million after an increase of ¥448 million, utilization of ¥1,765 million, and other changes. Although the risk of bearing costs associated with product defects remains, the provision balance has declined. - FY2025-H1WorsenedAnnual report
「Product warranty provision 1 April 2024 ¥8,380 million Increase during the period ¥1,347 million Decrease during the period (utilized) △¥109 million Decrease during the period (reversal) — 30 September 2024 ¥9,617 million」
The product warranty provision for defects in products supplied to a specific US customer increased from ¥8,380 million at the beginning of the period to ¥9,617 million after an increase during the period and utilization. The possibility of recognizing an additional provision or reversing part of the provision is also disclosed. - FY2024-Q3WorsenedAnnual report
「The product warranty provision covers modification costs for defects in certain products supplied by the company to a specific customer in the United States, based on information currently available and judged to be grounded in reasonable facts. It is calculated by multiplying the estimated number of incidents by the estimated modification cost per unit.」
Reflecting newly obtained information and other developments during the third quarter, the product warranty provision for defects in products supplied to a specific US customer increased by ¥2,791 million from ¥3,478 million at the beginning of the period to ¥6,269 million. The possibility of an additional provision or reversal is also disclosed. - FY2024-Q1WorsenedAnnual report
「Product warranty provision 1 April 2023 ¥3,478 million Increase during the period ¥632 million Decrease during the period (utilized) — Decrease during the period (reversal) — 30 June 2023 ¥4,110 million」
The product warranty provision for defects in products supplied to a specific US customer increased by ¥632 million from ¥3,478 million at the beginning of the period to ¥4,110 million. The possibility that an additional provision could materially affect consolidated results continues to be disclosed. - FY2023WorsenedAnnual report
「The company has recognized a provision for the amounts expected to be incurred in the future to cover modification costs for certain products it supplied.」
The product warranty provision for defects in products supplied to a specific US customer increased from ¥1,669 million at the end of the previous fiscal year to ¥3,478 million. The company states that it is difficult to reliably estimate the additional financial impact. - FY2023-Q3WorsenedAnnual report
「Product warranty provision 1 April 2022 ¥1,669 million Increase during the period ¥1,450 million Decrease during the period (utilized) — Decrease during the period (reversal) — 31 December 2022 ¥3,119 million」
The product warranty provision for defects in products supplied to a specific US customer increased from ¥1,669 million to ¥3,119 million. The possibility that an additional provision could materially affect consolidated results continues to be disclosed. - FY2023-Q2WorsenedAnnual report
「Product warranty provision 1 April 2022 ¥1,669 million Increase during the period ¥1,367 million Decrease during the period (utilized) — Decrease during the period (reversal) — 30 September 2022 ¥3,037 million」
The product warranty provision for defects in products supplied to a specific US customer increased from ¥1,669 million to ¥3,037 million. The company also states that it is difficult to reliably estimate any additional financial impact and that an additional provision could materially affect consolidated results. quantified is true, and materialized is true. - FY2023-Q1WorsenedAnnual report
「The product warranty provision covers modification costs for defects in certain products supplied by the company to a specific customer in the United States, based on information currently available and judged to be grounded in reasonable facts. It is calculated by multiplying the estimated number of incidents by the estimated modification cost per unit. Excluding amounts for which provisions have already been recognized, the company is currently unable to make a reliable estimate of the expected financial impact of these modification costs.」
The product warranty provision for defects in products supplied to a specific US customer increased by ¥826 million from ¥1,669 million to ¥2,495 million as of 30 June 2022. The company also states that it is difficult to reliably estimate any additional financial impact beyond the amount already recognized, and that an additional provision could materially affect consolidated results. - FY2022-Q3RestatedAnnual report
「The company may bear all or part of the costs incurred by a specific customer in addressing defects in some products supplied by the company. However, no provision has been recognized because the amount cannot reasonably be estimated at this time.」
The company continues to disclose the possibility of bearing customer-response costs associated with product defects, while stating that a reasonable estimate of the amount is difficult at this time. - FY2022-Q1RestatedAnnual report
「During the three-month period ended [the current first quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
No significant changes have been made to the compensation risks associated with product defects and large-scale recalls. - FY2021-Q2RestatedAnnual report
「During the six-month period ended [the current second quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
No significant changes have been made to the compensation risks associated with product defects and large-scale recalls. - FY2021-Q1RestatedAnnual report
「During the three-month period ended [the current first quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
No significant changes have been made to the compensation risks associated with product defects and large-scale recalls. - FY2020MaterialisedAnnual report
「Some of the lockup clutches produced by the company were defective, and the customer filed a notification of a market recall for vehicle models equipped with the affected products. In connection with this, the company recorded ¥2,880 million in additions to the product warranty provision under "Other expenses."」
The previously identified product-defect and recall risk materialized, and ¥2,880 million was recorded in the product warranty provision in connection with the lockup clutch recall. - FY2020-Q3RestatedAnnual report
「During the nine-month period ended [the current third quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
No significant changes have been made to the compensation risks associated with product defects and large-scale recalls. - FY2020-Q2RestatedAnnual report
「During the six-month period ended [the current second quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
No significant changes have been made to the compensation risks associated with product defects and large-scale recalls. - FY2020-Q1RestatedAnnual report
「During the three-month period ended [the current first quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
No significant changes have been made to the compensation risks associated with product defects and large-scale recalls. - FY2019RestatedAnnual report
「The Group takes every possible measure to ensure product quality, but does not guarantee that defects or other problems will not occur in any of its products.」
The risks associated with product defects, large-scale recalls, compensation costs, and reputational damage continue to be disclosed. - FY2019-Q3RestatedAnnual report
「During the nine-month period ended [the current third quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
No significant changes have been made to the compensation risks associated with product defects and large-scale recalls. - FY2019-Q2RestatedAnnual report
「During the six-month period ended [the current second quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
No significant changes have been made to the compensation risks associated with product defects and large-scale recalls. - FY2019-Q1RestatedAnnual report
「During the three-month period ended [the current first quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
No significant changes have been made to the compensation risks associated with product defects and large-scale recalls. - FY2018RestatedAnnual report
「The Group takes every possible measure to ensure product quality, but does not guarantee that defects or other problems will not occur in any of its products.」
The risks associated with product defects, large-scale recalls, compensation costs, and reputational damage continue to be disclosed. - FY2018-Q3RestatedAnnual report
「During the nine-month period ended [the current third quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
No significant changes have been made to the compensation risks associated with product defects and large-scale recalls. - FY2018-Q2RestatedAnnual report
「During the six-month period ended [the current second quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
No significant changes have been made to the compensation risks associated with product defects and large-scale recalls. - FY2018-Q1RestatedAnnual report
「During the three-month period ended [the current first quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
No significant changes have been made to the compensation risks associated with product defects and large-scale recalls. - FY2017RestatedAnnual report
「If a finished-vehicle manufacturer conducts a large-scale recall or similar action due to defects or other issues in products supplied by the Group, the Group's operating results and financial condition may be seriously affected by substantial costs and a significant impact on the Group's reputation.」
The risks associated with product defects, large-scale recalls, compensation costs, and reputational damage continue to be disclosed as before. - FY2017-Q3RestatedAnnual report
「During the nine-month period ended [the current third quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
No significant changes have been made to the compensation risks associated with product defects and large-scale recalls. - FY2017-Q2RestatedAnnual report
「During the six-month period ended [the current second quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
No significant changes have been made to the compensation risks associated with product defects and large-scale recalls. - FY2017-Q1RestatedAnnual report
「During the three-month period ended [the current first quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
No significant changes have been made to the existing risks associated with product defects and large-scale recalls. - FY2016First statedAnnual report
「If a finished-vehicle manufacturer conducts a large-scale recall or similar action due to defects or other issues in products supplied by the Group, the Group's operating results and financial condition may be seriously affected by substantial costs and a significant impact on the Group's reputation.」
The costs and potential effects on the Group's reputation, operating results, and financial condition in the event of quality defects are identified as risks.