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Shimano Addresses Mould and Equipment Lending Issue, Affecting 121 Subcontractors

Shimano's unusual lending practice impacts thousands of items and companies. The cycling giant is now working to make amends and improve its processes.

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1 min read
In this picture we can see a market, in which we can see some stoles and we can see few people are...
In this picture we can see a market, in which we can see some stoles and we can see few people are around.

Shimano Addresses Mould and Equipment Lending Issue, Affecting 121 Subcontractors

Shimano, the renowned Japanese cycling components manufacturer, has been grappling with a significant issue since December 1, 2023. The company has been lending moulds and equipment to subcontractors free of charge, even without orders for parts. This practice has affected 4,313 moulds and pieces of equipment in total, impacting 121 subcontracting companies. Shimano has taken several steps to address this situation, including compensating affected companies and improving its processes.

Shimano's board of directors has issued an apology and committed to preventing similar issues in the future. The company is currently reviewing internal compliance training and strengthening verification systems to ensure such incidents do not recur. Additionally, Shimano is addressing concerns raised by Japan's Fair Trade Commission regarding its outsourced manufacturing practices.

In response to the crankset recall process, Shimano is providing additional tools and training to retailers to enhance efficiency. Furthermore, the company is offering an additional two years' warranty to US cyclists with defective cranks. Shimano is also in the process of requesting cost estimates from all affected subcontractors and completing payments where requested. However, it remains unclear which subcontractors have not yet filed a compensation claim, as there is no publicly available information specifying this.

Shimano's response to this issue includes compensation, improved processes, and enhanced customer support. The company's commitment to rectifying the situation and preventing future occurrences demonstrates a responsible approach to its supply chain management. As investigations continue and payments are finalized, Shimano aims to restore confidence in its manufacturing practices and maintain its reputation in the cycling industry.

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