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UPDATE: Nissan Suspends New-Car Sales in Japan, Recalls 1.2 Million Units
Nissan Motor Co. says it will recall 1.2 million cars in Japan that were not properly inspected for safety before being sold there.
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Nissan Motor Co. says it will recall 1.2 million cars in Japan that were not properly inspected for safety before being sold there.
CEO Hiroto Siakawa tells reporters the campaign will cover 24 models and virtually all cars built for the domestic market from October 2014. The problem occurred at all six of Nissan’s domestic assembly plants. The Nikkei estimates the cost of the callback at 25 billion yen ($220 million).
Japan’s Ministry of Land, Infrastructure, Transport and Tourism says its on-site investigation on Sept. 18 showed that some safety checks made during the final vehicle inspection process were conducted by unauthorized personnel, thereby violating government regulations.
Siakawa says Nissan has launched its own probe into how and why the mistake occurred. He says the process will require at least a month to complete.
Nissan advised dealers on Sunday that it was halting retail registrations of new vehicles in Japan because of the crisis, including the redesigned Leaf electric sedan that was to debut today. The suspension covers 60,000 vehicles that have not yet been turned over to customers. Those vehicle are expected to be cleared for distribution by tomorrow.
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