Consecutive Rubber Scandal

“All or Nothing” is what you see in the center of English webpage of the company. Toyo Tire & Rubber Co. announced on Wednesday that it had delivered a number of rubber products for stabilizing ship or train with fabricated data for strength. This is the third time for the company to reveal data fabrication on its products. Although anti-quake rubber products occupy small share of its products, the scandal shook one of the frontrunners in Japanese rubber makers.

Toyo Tire found that it had delivered 87,804 industrial parts with false data to 18 companies for these ten years. They included rubber parts for window rim or basis of ship engine that would enhance amenity of passengers with less vibration. The parts are supposed to be installed thousands of train cars or hundreds of ships. Ministry of Land, Infrastructure, Transport and Tourism announced that the parts would not require immediate inspection without fear of serious consequence in safety.

The problem was that Toyo Tire could not stop fabricating data on its products. In 2007, the company found data fabrication on heat-blocking insulation panel to prevent spreading fire in the buildings. In March of this year, new false data was found in earthquake absorber for the basis of tall buildings. Since both failures might cause serious consequence on lives in a major disaster, the company promised thorough inspection on their production lines.

Both of the scandals this year were made in a mill in Akashi, Hyogo. According to Toyo’s internal research, some employees in the section for quality guarantee were involved in fabricating data of their products. After the company cut labor forces in the section in 2008, false data increased. Data fabrication was informed by other workers in the section after the company made a training for compliance.

Clients, including major corporations like East Japan Railway, Mitsui Engineering & Shipbuilding, Mitsubishi Heavy Industry or Hitachi, are busy in checking the impact of the scandal. Yokohama Rubber Co. Ltd., a maker of similar products, predicted a long period of time for Toyo to recover the parts with false data. It is a serious problem for Japan brand.

Insulation panel, quake absorber or ship stabilizer is not main product of Toyo, since car tire occupies eighty percent of all. But, consecutive scandals definitely harm credibility of the company. If something happen in its main product, which should directly affect life of automobile passenger, Toyo’s fate will be sealed. Is Toyo really taking an option of all or nothing?