Mitsubishi Electric CEO Resigns Over Train Inspection Cheating Scandal

Mitsubishi Electric Corp. said Wednesday President and CEO Takeshi Sugiyama has resigned to take responsibility for years of cheating in train equipment inspections and has been replaced by Senior Vice President Kei Uruma, according to a Mainichi Shimbun report.

Under Uruma, 62, Mitsubishi Electric will investigate the root causes of the misconduct, reform its corporate culture, and restore shareholders' trust, the Japanese electronics conglomerate said.

Uruma's promotion was approved Wednesday at a board meeting.

The cheating occurred during inspections to check the quality of air conditioners and compressors for train use. Sugiyama has said the misconduct was "organizational" as it may have continued for over three decades since around 1985.

Mitsubishi Electric has revealed that around 84,600 air conditioners for train use were shipped between 1985 and 2020 to about 80 companies, of which about 15,800 units were delivered to around 15 countries including Britain, Germany, and the United States.

About 1,500 air compressors, used to control train doors and brakes, were all shipped in Japan.

Domestic customers include major train operators East Japan Railway Co., West Japan Railway Co. and Central Japan Railway Co.

A number of cases of misconduct have come to light at Mitsubishi Electric in recent years. In 2018, a Mitsubishi Electric subsidiary revealed it had shipped rubber products that did not satisfy promised quality standards. Last year, Mitsubishi Electric also said automotive radio receivers shipped to the European Union did not meet local standards.

WEEKLY FEATURE : PAL READY TO SOAR WITH PANDEMIC