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Nissan halts production in Japan over test scandal

Nissan halts production in Japan over test scandal
Nikhil Puthran Nikhil Puthran Friday 20 October 2017, 17:04 PM

Nissan had announced a recall earlier this month for nearly 1.2-million vehicles in Japan which were produced in last three years and uncertified technicians had carried out the final inspections on cars. Owing to the scandal, Nissan has halted the production of cars in its domestic market. Reports indicate that the total recall might cost the company ¥25bn.

Nissan has admitted that staff without proper authorisation had conducted final inspections on some vehicles intended for the domestic market before they were shipped to dealers. Third party investigator has also revealed that the misconduct had continued at three of its six plants in Japan even after the company had taken steps to end the crisis. About 34,000 Nissan vehicles are yet to be sold, but will have to be re-inspected again at a cost estimated to be less than ¥1bn.

The company has halted the production for the Japanese market as the inspection lines will have to be reconfigured and the number of inspectors will have to be increased. The car manufacturer produced over 79,000 units of passenger and commercial in August, of which around 6 per cent which is 27,600 units were sold in Japan alone. More details about future course of action will be known in the days to come.

 

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