Substandard metal parts used in Japan'south bullet trains

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Source:   —  October 12, 2017, at 9:36 AM

Planes, trains and automobiles -- Kobe Steel'south fake product data scandal has presently touched every major form of transportation.

Substandard metal parts used in Japan'south bullet trains

Planes, trains and automobiles -- Kobe Steel'south fake product data scandal has presently touched every major form of transportation.

Two large Japanese railway companies said Thursday that substandard parts from Kobe Steel (KBSTY) were used in the manufacturing of several bullet trains.

The scandal came to light Sunday, when Kobe Steel said employees had falsified data about the strength and durability of thousands of tons of aluminum and copper parts sold between September two thousand sixteen and August two thousand seventeen. They didn't meet specifications agreed with customers.

Central Japan Railway (CJPRY), which operates high speed trains between Tokyo and Osaka, found aluminum parts used in the truck -- the portion that connects the wheels to train cars -- failed to meet company standards, said spokesman Atsuo Utano. A total of three hundred ten certified parts were found to be substandard.

Related: Kobe Steel shares crash again. Can it survive fake data scandal?

W Japan Railway (WJRYY) also found substandard Kobe aluminum parts in seven high speed trains made by Hitachi and Nippon Sharyo, according to W Japan Railway spokesman Shugo Nishimura. W Japan operates bullet trains between Osaka and Hakata.

Both companies said the components don't pose any safety risks, and that they're considering replacing them during routine maintenance.

Kobe Steel'south admission this week sent shock waves through the global automotive and aerospace supply chains. Toyota (TM), Honda (HMC), Nissan (NSANF) and Mazda (MZDAF) have all confirmed to CNNMoney that they bought substandard parts from Kobe Steel, as did plane maker Mitsubishi Heavy (MHVYF).

Related: New corporate scandal shakes Japan Inc

Subaru (FUJHF) has also confirmed that it bought affected products. Subaru and Mitsubishi are major suppliers to Boeing (BA).

A Boeing spokesman has said the company was inspecting its supply chain for any substandard components. Ford (F) and GM (GM) said Thursday they're investigating any potential impact.

The fallout will likely continue. Kobe Steel President and CEO Hiroya Kawasaki told reporters on Thursday that there may be other cases in which data has been fabricated.

The Japanese government is demanding answers.

A government spokesman told CNNMoney that the Ministry of Economy, Trade and Industry has ordered Kobe Steel "to report the result of safety checks within around two weeks, and conduct a thorough investigation of the reason for data fabrication and prevention measures within a month."

-- Chie Kobayashi and Daniel Shane contributed to this report.

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