Manufacturer and distributor of aluminum extrusions in the US, Kobe Steel, has come under fire after reports revealed its staff falsified data about the strength and durability of some aluminum and copper products used in cars.
According to reports by Reuters, companies such as Toyota, Honda and Subaru have all come forward stating they have used materials that were part of the falsification scandal.
Kobe's shares began to plummet following the announcement, with replacement cost estimates reaching $170 million AUD.
The company revealed it had distributed falsified products to over 200 undisclosed companies.
Kobe Steel said it discovered the issue in products manufactured between September 2016 to August 2017, noting there have been no reports of safety issues.
The products account for four percent of shipments of aluminum and copper parts as well as castings and forgings.
Honda has stated that it used materials in car doors and hoods, Mazda has also revealed it used falsified aluminum from the company.
In a company statement, Kobe Steel acknowledged the error it made and apologised for the "considerable trouble caused."
"Kobe Steel is currently undertaking an investigation of the facts pertaining to the improper conduct in the Aluminum & Copper Business.
"Kobe Steel is also conducting an investigation as to whether or not similar improper conducts exist in its other business units.
"In regard to this, the investigation by the outside law firm, which was commissioned by the investigation committee on quality issues, is still not completed.
"Kobe Steel plans to make a report on the results once the investigation is completed. With respect to a portion of the investigation currently being undertaken, Kobe Steel reports that a similar kind of improper conduct (hereinafter referred to as “improper conduct”) has been confirmed."