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Mitsubishi Electric Chairman resigns over quality scandal

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01 Oct 2021 07:10:09 GMT9
01 Oct 2021 07:10:09 GMT9

TOKYO: Mitsubishi Electric Corp. Chairman Masaki Sakuyama stepped down Friday over a series of improper product inspection practices, the company said.

Products affected by the scandal include air conditioners for train cars. Sakuyama also resigned as vice chairman of the Japan Business Federation, or Keidanren.

Mitsubishi Electric has had “an inward-looking, closed organizational culture,” a committee of outside lawyers set up by the company to investigate the product quality scandal said in a report.

The report said that “there were cases of justification based on the mentality that ‘there is no problem as long as there is no actual quality issue.'”

The committee also pointed to a lack of communications between the company’s headquarters and factories, saying that many factory workers have strong affiliations to the factories where they work rather than the company itself, the committee said.

The company said that it has set up an office in charge of establishing a new quality assurance system to prevent any recurrence of the scandal. The new office directly reports to CEO Kei Uruma.

In addition, Mitsubishi Electric will appoint a chief quality officer from outside the company in April 2022. It will also set up a committee of outside lawyers to oversee governance reform.

JIJI Press

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