IHI (TYO:7013) has completed the investigation into Niigata Transys's misconduct involving 1,233 modified rotary snowplows, where test vehicles were altered to enhance performance metrics without customer disclosure.
While 9 of 10 affected models passed subsequent performance tests, the failed model (NR301) required component replacements for compliance, prompting corrective actions for all 107 sold units, according to its Tuesday filing.
The IHI Group will strengthen quality controls through process reforms, audits, and cultural changes, while Niigata Transys executives will return portions of their remuneration as accountability measures.
IHI reiterated apologies for the breach of trust but confirmed the incident's financial impact as minor, focusing on systemic improvements to prevent recurrence.
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