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The encyclopedia · Legal & Compliance · Operational decision · 2017

Toray falsified tire cord data for a decade — the tires went on cars worldwide

In 2017, Toray Industries admitted its subsidiary falsified tire cord strength data for 10 years. The affected tires were sold by major manufacturers.

Toray Industries · 2017-11

What happened

In November 2017, Toray Industries, a major Japanese materials company, admitted that its subsidiary Toray Hybrid Cord had been falsifying strength data for tire reinforcement materials for approximately 10 years. The falsified data made the tire cord appear stronger than it actually was.

The affected materials were supplied to major tire manufacturers, and the tires were used on vehicles worldwide. The admission came as part of the broader wave of quality data falsification scandals in Japanese manufacturing that also hit Kobe Steel, Mitsubishi Materials and others.

Toray's stock fell following the admission, and the company's reputation for quality was damaged. The case illustrated how the Japanese manufacturing sector's quality crisis was not isolated to one company but reflected systemic problems in how quality data was collected, reported and verified across the supply chain.

Why it happened

  • Toray's subsidiary falsified tire cord strength data for approximately 10 years.
  • The affected materials were supplied to major tire manufacturers worldwide.
  • The admission was part of a broader wave of quality falsification in Japanese manufacturing.
  • Toray's stock fell and its quality reputation was damaged.
What it cost10-year fraud; global tire supply affected; stock declinecostly

The lesson

When quality falsification appears across an industry's supply chain, the problem is systemic. Toray, Kobe Steel, Mitsubishi: the pattern was the same. The report was a formality.

Aftermath

Toray apologized and implemented new quality control procedures. The case contributed to the broader re-examination of Japanese manufacturing quality practices. Japan's 'monozukuri' (craftsmanship) reputation was damaged by the wave of scandals.

Sources

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