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Nissan braces for heavy cost of regulatory shortfall

Automaker to spend $220m or more to recall 1.21 million cars

Nissan Motor CEO Hiroto Saikawa briefed reporters on the scandal at a Oct. 2 news conference.

TOKYO -- Nissan Motor is scrambling to initiate a recall equivalent to more than double its annual domestic sales volume following the revelation of a grave regulatory oversight, prompting concern over the harm to its brand image and sales.

The scandal involves final inspections at factories, a necessary step before vehicles are allowed on public roads under Japanese regulations. Automakers carry out the checks on behalf of the government.

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