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00:00:02
>> A pillar of the Japanese economy in a deepening crisis. The President of Kobe Steel bowing low for the media on Thursday, apologizing for a ballooning scandal after it emerged that the company lied about safety data in materials used to make countless products from cars to space rockets.
00:00:18
The company is Japan's third largest steel maker. As Reuters Aaron reports, the crisis marks another blow to the country's reputation for quality.>> This follows on from a numerous recent scandals including a machines fixing at Mitsubishi Motors. A recent falsification at Nissan Motor and of course the huge scandal with Takata airbags.
00:00:44
Today, the CEO said that there were possible further cases. So accounting the cost is still something that has to be done.>> So far, Kobe has admitted to 70 cases of falsified data on optic discs and LCDs. On top of earlier news that it found problems with aluminum and copper sold to hundreds of companies.
00:01:06
The scandal has set off a safety scare around the world. Ford and Boeing now among those looking in to whether they used sub par materials for Kobe, what that could mean for the safety of their products.>> At the moment, the company and the government say there's no risk to public safety, but the extent of the falsification has still not been fully established.
00:01:26
And just trying to find out where these particular falsely certified parts are, is going to take some doing.>> Kobe share prices has taken a hammering in recent days. The scandal already wiping more than $1.5 billion dollars off its market value. And analyst say it could also have to pay the cost of recalls and lawsuits.
00:01:45
Japanese officials have given Kobe two weeks to report new safety checks and a month to explain why it fudged the numbers. The company says it's looking into skewed reports going back a decade, and an external investigation is also under way.