MFTBC TAKES DISCIPLINARY ACTION
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In a continuing effort to proactively improve corporate culture Mitsubishi Fuso (MFTBC) today updates the public on the current status of ongoing activities and initiatives. The company hereby provides an update on three key measures:
During the last week, a number of former executives and employees were indicted. MFTBC takes this very seriously. President and CEO, Wilfried Porth, today, once again, expressed his sincerest apologies to MFTBCs customers and all effected persons for any inconvenience and anguish caused by this matter. We deeply regret the wrongdoings in the past. The new management will strive constantly to improve our quality management. In doing so, we will continue with our internal quality investigation in order to regain the fullest trust of our long-established customers and the general public, Porth said. MFTBC continues to fully cooperate with all relevant police and investigating authorities. MFTBC had announced on May 20th that it would take disciplinary action against employees in connection with the quality issues related to two previously announced recalls: the Hub Case and the Clutch Housing Case. An internal investigation has determined that three departments should be held accountable for previous misconducts. These departments are:
The responsibility of the former truck divisions management and employees, in this respect, has been proven material. Provided, however, that in some way the respective former management and employees acted in a framework which made them follow established yet unwritten rules imposed by top management, leniency was taken into account while deciding on disciplinary actions against them. As a result of the ongoing internal investigation, 29 staff members were subjected to the following disciplinary actions for direct involvement:
These actions are in line with Japanese Labor Standards Law as-well as in-house company rules and procedures. The second proactive measure that seeks to improve MFTBCs corporate culture relates to the corporate governance structure. MFTBC believes that a clear prerequisite for change is to develop and improve this structure. It has therefore established two committees in the wake of the recent findings. These committees are the:
Both Committees, respectively, have by now met in session and decided upon a time-frame for future reform. A decisive role for reform is played by the Quality Advisory Committee. Its task is to evaluate and decide upon concrete measures for quality improvement. The Committee held its inaugural meeting on May 17th. It is comprised of four members, MFTBCs Chairman Michio Hori, and three external experts:
MFTBC is deliberately seeking the counsel of external specialists as it considers their expertise and independence key to developing impartial directives. This committee has three sub-committees which deal with the following issues:
The chairman of MFTBC, Michio Hori said: Our job is to provide a framework for reform and to drive action which supports the reform of corporate governance. We very clearly have our customers and the public in focus. The second committee is the Corporate Culture Reform Committee. It is headed by Atsushi Ueki, Expert, Corporate Office. This committee is comprised of 12 members from different areas of the company. It has already met a number of times and has set an agenda calling for the examination of the following points:
Both committees have set themselves a clear timeline of 12 months, taking into account the complexity of the matter. There will be regular up-date reports. As a third point of practical corporate action, MFTBC today announced the start of an ongoing, internet-based quality progress report. The aim of this initiative is to consistently update the public on background facts as well as progress made in quality issues. These details can be accessed at www.mitsubishi-fuso.com/jp. This new service - for the domestic market - will start next week. It will provide information on the work-progress of the Committees as well as the recall issues. Countermeasures for export models will also be conducted, but in line with the regulations of the respective markets. In its effort to update the public MFTBC would like to point out the progress of the ongoing quality issues: Regarding the recall of the front and rear hubs (Hub Case), MFTBC is currently, as announced, employing temporary measures while doing further evaluation to confirm permanent measures by the end of the June. Regarding the Clutch Housing Case, MFTBC has again initiated a temporary measure. During the period required to develop a permanent solution, affected vehicles are subject to stringent inspection and will have replacement parts provided if defective parts are found.
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