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Nissan Production Falls 15% in Japan
Nissan Motor Co. has told its domestic suppliers that it will build no more than 520,000 vehicles in Japan during the six-month period ending March 31, down from the 610,000 units it forecast previously, The Nikkei reports.
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Nissan Motor Co. has told its domestic suppliers that it will build no more than 520,000 vehicles in Japan during the six-month period ending March 31, down from the 610,000 units it forecast previously, The Nikkei reports.
The 15% drop will leave the company’s full-fiscal-year domestic output flat at 1 million units and dash earlier hopes of a 10% increase for the 12-month period.
The reduced throughput is the result of Nissan’s struggles to remedy a faulty safety certification process that used unqualified inspectors. The company admitted the practice had been going on for 20 years.
The revelation prompted Nissan to suspend assembly operations across Japan for nearly three weeks between mid-October and early November to reorganize its inspection process. The scandal also triggered the recall of 1.6 million vehicles Nissan sold in Japan over the past three years.
The company’s domestic plants are operating again but at below-normal levels as the manufacturer rushes to train 100 new inspectors, The Nikkei says.
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