TOKYO, Japan — Mitsubishi Electric used a computer software to falsify data on rail equipment dating back to the 1980s, showing a long history of deception at a business whose quality control issues have mostly gone unpunished. “This sequence of cases of wrongdoing, some involving products that are involved in safety,” Chief Cabinet Secretary Katsunobu Kato told reporters on Thursday. His remark came after two days of news about Mitsubishi Electric’s fabricated inspection data, first for air-conditioning equipment and subsequently for air compressors used in railway braking. The program in question necessitated the collection of source data using techniques defined in advance by the office. Mitsubishi Electric utilized the software to fill in reports on customer-specified inspections for products like air conditioners. Instead of doing new testing on each element after design revisions, the corporation repurposed outdated data in the case of air compressors. This indicates a systemic role in the deception, adding to the evidence of deep-seated deficiencies following three years of quality control failures encompassing everything from rubber to semiconductors. Despite this, the corporation appears to be reacting with a slap on the wrist. Last year, it was revealed that Mitsubishi Electric had sent to the European Union automobile radio receivers that did not match local specifications. The penalties were limited to auto equipment division executives voluntarily repaying 5% of their compensation for one month — a measure that excluded President Takeshi Sugiyama and was not made public. “Even when there aren’t any safety concerns, the going rate for three months is around 10%,” said attorney Nobuyoshi Shibuya, a corporate misconduct expert. “Mitsubishi Electric’s 5% to 10% for a month is a bare minimum, and it raises issues about whether they’re serious about it.” This tepid response has aided in the preservation of a corporate culture in which employees place a higher priority on their own divisions than the company as a whole and its customers. When Mitsubishi Electric hires engineers, it usually chooses the site where they will work based on their areas of competence ahead of time. Employees rarely leave their initial designated region, which fosters an insular mindset and encourages them to prioritize their own department’s interests. The problem is exacerbated by the company’s executive compensation structure. In fiscal 2020, Sugiyama received 200 million yen ($1.8 million), while other senior officers received around 100 million yen ($900,000). According to a former employee, this high salary across the board helps keep divisions from competing with one another, but it also discourages officials from speaking up about areas outside their authority. When a company’s management fails to address a quality scandal, the company’s reputation might be shattered. In 2015, Volkswagen CEO Martin Winterkorn was forced to quit after it was uncovered that the company had put software in vehicles to cheat pollution tests. Mitsubishi Electric has organized a team, which will include an outside attorney, to look into the quality control issues once more. “We won’t be able to meet our social duties if we don’t take this moment to give it everything we’ve got,” an executive added./n
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