Nissan’s production in Japan is expected to be halted for two weeks. Around 1.16 million vehicles have been locally recalled as well.
Nissan Motor Co. has suspended all of its production in its homeland, Japan, after the company’s flawed vehicle quality inspection process was exposed.
Nissan has six manufacturing units in Japan, which produce an average of 1,000 vehicles daily. The local authorities discovered uncertified workers carrying out the quality checks for Nissan vehicles sold in Japan. To make matters worse for Nissan, a media report suggests that Nissan’s improper inspection process may go back as many as 20 years. To figure out the root of this problem, Nissan will suspend domestic production in all of its Japanese plants for two weeks. However, cars made for export will not be affected.
Nissan has issued a recall of 1.16 million vehicles made and sold in Japan between January 2014 and September 2017, for inspection purposes. This is expected to cost the company around 25 billion yen.
Following this news, Nissan’s shares around 2.4 per cent in Tokyo, while it's suppliers’ stocks also witnessed a drop. Nissan's strategic partner, Renault SA, also saw a 1.9 per cent dip in its stocks in Paris.