Bullet Train Parts Failed Quality Tests: Steel Scandal Deepens
- JR Central, JR West say parts do not pose safety concerns
- Shares rebound slightly after plunge; CEO apologizes
Kobe Steel Says 'May Find More Fake Data'
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Kobe Steel Ltd.’s fake data scandal penetrated deeper into the most hallowed corners of Japanese industry as iconic bullet trains were found with sub-standard parts supplied by the steelmaker.
While there’s no safety risk, two companies operating the high-speed Shinkansen trains said they found Kobe Steel components that failed to meet Japanese industry standards. The chief executive officer of the 112-year old steelmaker apologized for the crisis as compromised materials turn up in everything from cars to DVDs. The affair has wiped off more than a third of the company’s market value and led to speculation it may be broken up.