Japan’s IHI Power Systems Company, a major engine manufacturer for marine and land applications, issued an apology and “Notice of Misconduct” after a whistleblower revealed that fuel consumption data had been altered for decades. An internal investigation confirmed “improper alterations” to test operation records dating back to the 1980s at one plant and 2001 at another. Inspectors from Japan’s Ministry of Land, Infrastructure, Transport, and Tourism raided the company’s manufacturing plants in Niigata and Gunma prefectures, collecting information and conducting interviews.
The fraud was uncovered when an employee reported in February 2024 that fuel consumption rates provided to customers were different from actual test results. The company found that over half of the engines shipped did not meet specifications, with 86% of marine engines and 40 models of land-use engines affected. IHI Power is investigating potential violations of marine pollution regulations for the engines.
Despite the misconduct, the company remains involved in innovative engine projects, such as developing ammonia-fueled engines and battery-powered engines. This is the second instance of misconduct for IHI Corporation, the parent company, following a 2019 incident involving aircraft engine parts. The company assures that there have been no safety issues with the engines during testing or actual use.
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