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What is the worrying factor about Kobe's statement?
Kobe Steel, Japan’s third-largest steel company, has issued a shocking statement that quality checks were not followed by many of its subsidiaries before selling copper, aluminum, and steel products to more than 500 companies. This disclosure could affect the global supply chain in a major way.
Safety concerns are extremely high because the buyers include airplane manufacturer Boeing; automakers Toyota, Honda, and Ford; and bullet train manufacturer Hitachi.
Kobe Steel recently forecast a net profit of 5 billion yen ($312 million) for the current fiscal year. However, the ongoing scandal could have a negative impact on that prediction because customers are likely to claim replacements, recalls, and damages.
This is not the first time that the 112-year-old company has been involved in controversy. In the 1990s, Kobe Steel was caught paying off a cheat. In 2006, there was news that one of its steel mills altered soot emissions data. In 2009, the chairman and CEO had to resign following the discovery that Kobe Steel had made illegal political contributions.
What is the worrying factor about Kobe's statement?
Which automaker might be affected by Kobe’s products?
In 2006, a Kobe unit was charged with
Customers are likely to claim damages.
In the above sentence, what does the word damages mean?
Kobe recently forecast a net profit of 5 billion yen
In the above sentence, the word forecast is used as
What shows that Kobe Steel has not learned from past mistakes?
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