07/03/2018

Toyota accused of using substandard metal

Reuters reports that Toyota Motor Corp and Kobe Steel Ltd have been hit by a lawsuit in the US accusing them of using substandard metal components in vehicles.

The companies are facing a class-action lawsuit by US consumers who say the companies have violated consumer protection laws and engaged in fraud by concealing the use of substandard metal components in vehicles.

Chief executive officer Hiroya Kawasaki announced yesterday he would quit to draw a line under the scandal.

The 112-year-old company, which supplies steel and aluminium parts to manufacturers of cars, planes and trains around the world, admitted last year to supplying products with falsified specifications to around 500 customers, throwing global supply chains into turmoil.

Kobe, Japan's third-largest steelmaker, admitted last year that it had supplied products with false specifications to around 500 customers and has now said that the data fraud had gone on for nearly five decades, and actually affects 605 clients, including 222 overseas. The company said Kawasaki would quit on April 1.

According to the complaint, Toyota's Prius, Camry, Land Cruiser and Lexus vehicles have all been manufactured with "sub-standard" steel, aluminium and copper.

The plaintiffs allege that Toyota and Kobe Steel both violated federal and state consumer protection laws by claiming that the vehicles complied with U.S. quality standards.

'We have not grasped the whole content of the case and we are now looking into the matter,' a Kobe Steel spokesman said today.

Toyota declined to comment on the lawsuit.