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Nissan suspends production in Japan over test scandal

October 20, 2017, 03:45 PM IST by Nikhil Puthran
Nissan suspends production in Japan over test scandal

Earlier this month, Nissan was forced to recall nearly 1.2-million vehicles produced in Japan after reports revealed that in the past three years uncertified technicians carried out final inspections on cars. Reports further indicate that the total recall might cost the company ¥25bn (over Rs 1,435 crores). The scandal has resulted in the company suspending production of cars in the domestic market.  

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 (over Rs 574 crores).

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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