Because of the unauthorized checks, Nissan calls back a million cars to be rechecked.
Final vehicle inspections were not done properly or in some cases, were not done at all, as Nissan Motor Co Ltd wants to recall 1.2 million cars from Japan. This would cost the company around 222 million US Dollars, and it presents itself as a huge shock to company’s economic status.
This should be done for all the cars that were manufactured between October of 2014 and the September of 2017. Hiroto Saikawa, the CEO of the company said that these checks need to be done seriously and precisely. The budget should not present a problem and the lack of staff is manageable. Our customers need the full service and support and we are there to provide that for them.
The company is sorry for the inconvenience and hopes that this will not affect their sales on the market as it is predicted. The company is now researching and inspecting how much of the damage is done and how did the cars even pass those ‘fake’ tests. This process may take up to a month. They will also hire a team of experts to help their investigation and get the maximum from it.
After the Mitsubishi admitted that they had faked the fuel and economy tests, Nissan took the leadership on the Japanese market of cars, and now, year and a half later they admit the same thing. As things stand now, there might be a lot of suspended vehicles.
To put this into a different perspective, more than 60 thousand cars will be banned from registration until all the tests are finished and results compared with the fake, unauthorized inspections.
The economy already struck the company, as the shares fell up to 5.3 percent to their lowest. This is the first occurrence of such an event after the April when they closed down at 2.3 percent.
Nissan is one of the leading Japanese companies in car manufacturing, transport and infrastructure and they had made over 386 thousand vehicles for just the domestic market. Because of the registration procedure that is done every three years, the authorities know what cars are those and they can be recovered and put to all the tests needed.
The Ministry of Infrastructure, Land and Transport have reported on Friday that Nissan was asked to report all the security measures needed, by their opinion, so this problem can be prevented from reoccurring and solving the problem by the end of the October.