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Suzuki Motor estimates 714 million dollar loss in cars recall

Christian Fernsby |
Japan's automaker Suzuki Motor Corp. said Friday it will log about 80 billion yen (714 million U.S. dollars) in loss in fiscal year 2018 due to a recall of two million vehicles in Japan.

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The corporation also submitted an investigation report on inappropriate checks on brakes and fuel-economy to the transport ministry, local media reported.

In the report, Suzuki revised the number of cars affected by improper fuel-economy inspections and data falsification to 11,070, up from 8,577 reported last September.

The company said that improper product inspections took place at three plants in Shizuoka Prefecture from April 2008 to last September.

The report also said the company has newly discovered that improper brakes inspections were conducted from June 1981 to this past January.

The company said the faulty inspections took place due to a shortage of inspectors and lack of supervision among other factors.

The automaker said it will spend 170 billion yen (1.517 billion U.S. dollars) over the next five years to enhance quality control.

Suzuki is the one of the latest Japanese firms found to have been carrying out improper safety checks or fabricating quality control data.

Japan's heavy machinery maker IHI Corp. has admitted to have uncovered more than 7,000 cases of faulty inspections.

Automakers Nissan Motors Co. and Subaru Corp. have admitted to inspections being carried out by unqualified staff. Kobe Steel Ltd. and Mitsubishi Materials Corp., meanwhile, have admitted to fabricating data related to their products.

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