Mitsubishi Electric CEO to quit over long-running data deceit

Mitsubishi Electric's CEO has announced that he will step down to take responsibility for "three decades of systematic deceit" during which the Japanese firm falsified inspection data for air conditioners and brake compressors used in trains.

Mitsubishi dents Japan's reputation for high-quality manufacturing, already tarnished by other cases of companies falsifying or covering up test data.

In a news conference, Takeshi Sugiyama said, "I am shocked by this". He also apologised for the falsification and further promised to appoint a successor as early as this month.

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Sugiyama became CEO in 2018 and has been with Mitsubishi for more than four decades. He said that he regretted not informing shareholders at its annual meeting on June 29. He further said that the company was aware of the air conditioner data problem two weeks before and knew about the air compressor falsifications the day before shareholders met, but chose not to release the information until June 30.

The latest corporate scandal comes amid heightened concern over corporate governance in Japan. This comes after an investigation found managers at Toshiba Corp had colluded with the trade ministry to pressure foreign shareholders.

Japan's economy and trade minister, Hiroshi Kajiyama, said earlier that the government would act if it found that Mitsubishi had broken any laws or regulations.

In the 35 years that Mitsubishi falsified inspection data, it supplied 84,600 air conditioning units to 80 rail companies. It said it shipped 1,500 compressors, used in train brakes and doors, including in Japan's high-speed bullet trains, to 20 mostly domestic companies.