ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Business

Nissan recall to cover 24 models produced over 3 years

Fixing mess expected to cost over $220 million as automaker considers user compensation

Nissan CEO Hiroto Saikawa bows after a news conference in Yokohama, Japan, on Oct. 2. (Photo by Kosaku Mimura)

YOKOHAMA -- Another flaw has been found in the safety dogma of the Japanese car industry. Nissan Motor announced a recall of 1.21 million cars, of 24 models, already shipped in Japan. Straightening out the issue will cost over 25 billion yen ($220 million).

Faulty inspections led to the major stumble by one of Japan's largest carmakers. "Almost all the cars produced for the Japanese market from October 2014 to September 2017 are subject to re-inspection," said Nissan CEO Hiroto Saikawa, at the press conference Oct. 2.

"We are also considering monetary compensation and consolation to the users," Saikawa said. The projected 25 billion yen cost to tackle the issue accounts for about 5% of Nissan's 2017 operating profit forecast.

On-site investigations on Sept. 18 by officials from the Ministry of Land, Infrastructure, Transport and Tourism revealed that final inspections at Nissan factories were done by unqualified employees before the vehicles were shipped.

Nissan has not yet determined the cause or motive behind the faulty inspections. "A full investigation will be conducted until I get results that convince me," Saikawa said. "Investigation will take all of October at least."

Nissan has suspended shipments of new cars, including the revamped Leaf, its signature electric car, since the issue was recognized. After re-inspecting the cars, Nissan plans to resume registering and shipping by tomorrow.

Saikawa, who is also chairman of Japan Automobile Manufacturers Association, has been eager to gain back the Japanese car industry's reputation, which was tarnished by several recalls announced by competitors last year. With Nissan joining them, Saikawa said, "We are sincerely sorry."

Nissan still hopes to participate in the one-week Tokyo Motor Show 2017 starting later this month, as Saikawa described it as "an event to bring excitement to the Japanese car industry."

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends June 30th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media