Tag Archives: scandal

Here we go again…

Kobe Steel has become wrapped up in a scandal involving many major automobile manufacturers (and some aerospace) and the steel they use to build their vehicles.

Kobe Steel is alleged to have falsified numbers in order to meet quality standards required by their automaker and aerospace customers.  In short, they lied about the quality of the steel being sold to Toyota, Mazda, GM, Mitsubishi and Boeing, among others.  It is believed that there are as many as 500 companies that have received sub-par quality steel.

Manufacturers are taking every precaution and checking the quality of the materials they have received from Kobe Steel and are assessing the possible ramifications as a result.

The Kobe Steel Company has already taken a 40% hit to their stock price and their future looks grim.  Their CEO has said they will take full responsibility and has already launched an internal investigation into how this happened in the first place.


Fiat Caught in UAW Labor Scandal

The former Fiat VP of Employee Relations, Al Iacobelli, has been indicted for donating upwards of 1 million USD to UAW (United Auto Workers) officials to be put towards mortgages, jewelry and even a $315,000 Ferrari.  All of the above puts Fiat in a tough spot as the donation is in direct violation of the Labor Management Relations Act.

This is coming on the heels of Fiat’s own version of #dieselgate (admittedly on a much smaller scale) and undoubtedly has the manufacturer’s reputation taking a bit of a hit.

Image result for Fiat 500 Abarth
Photo Credit: Edmunds.com