Credibility crisis for industry leaders

LONG KNOWN as a byword for industrial quality and fine craftsmanship, Made in Japan and Made in Germany are now undergoing troubled times with data-tampering scandals eroding their credibility. Southern Metropolis Daily commented on Wednesday:

Kobe Steel is just the latest in a string of corporate scandals involving data fabrication to hit Japanese manufacturers. Nissan Motor Co had to recall every new car it sold in Japan over the past three years amid concerns over falsified safety checks, while Suzuki Motor Corp and Mitsubishi Motors Corp have also faced scandals regarding their fuel economy data for their cars.

Likewise, German automaker Volkswagen, the world's largest automaker by sales, admitted in 2015 that it used unauthorized software to cheat the United States' diesel emission tests, which might have affected more than 10 million vehicles it sold worldwide. The credibility crisis facing time-honored manufacturers like Nissan and Volkswagen seems to have gone beyond shrinking domestic markets and increased global competition.