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Asia Today ISSN 1861-4604 Monday, January 22, 2018

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Nissan decides to suspend production for Japanese market

Nissan would stop production of domestic market

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TOKYO, Japan - In a bid to address misconduct in its inspection procedures that led to a major recall recently, Nissan has decided to suspend production of all cars for the Japanese market.

Production of all cars, the company said will be halted for several weeks, till the problem can be addressed. 

Further, Japan's second-largest automaker said it would stop production of domestic market vehicles at all six of its Japanese plants to reconfigure their inspection lines.

The decision came after Nissan admitted that uncertified technicians had continued to perform final vehicle checks even after the automaker said it had strengthened control of its inspection processes.

The issue first came to light late in September.

Due to the misconduct, over the past three years, Nissan has had to recall all 1.2 million new passenger cars sold in Japan.

The company also said that around 34,000 additional cars would be re-inspected, probably expanding the recall by around 4,000 units.

Nissan’s brand at home has suffered problems due to the issue.

Further, a data falsification scandal at compatriot Kobe Steel Ltd too has raised questions about compliance and quality control at Japanese manufacturers.

Earlier this month, Japan's transport ministry said that it had discovered that uncertified technicians at plants producing Nissan vehicles were using the stamps of certified technicians to sign off on final vehicle inspections, in violation of ministry guidelines.

Nissan was therefore forced to recall vehicles to re-do final inspections on issues including steering radius and braking and acceleration capabilities.

The inspections cost the company around 25 billion yen ($222 million).

Nissan has argued tht the misconduct has no impact on the quality of its vehicles and yet it has raised questions about how closely rules are followed at its production plants.

However, Nissan has said that it will continue to produce vehicles for export in Japan since the certification process for final inspections does not apply to vehicles shipped overseas.

 

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