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  HOME | Business & Economy (Click here for more)

Nissan Estimates 50% Domestic Sales Drop Following Inspection Scandal

TOKYO – Car manufacturer Nissan Motors estimated a nearly 50 percent sales plunge in Japan in October, following an inspection scandal at its domestic factories and subsequent suspension of production.

Nissan’s spokesperson told EFE that the firm would release the final sales data for October in late November.

The drop in sales in the Japanese market has been largely driven by the two-week suspension of production at its six plants, which might resume operation this week pending the approval of the Ministry of Transport.

The Yokohama-based company has adopted measures to resume operation at its plant in Kyushu (Southwest), which was inspected Wednesday by the Japanese authorities, and would adopt the measures at other plants in the coming days, according to the company’s statement.

Nissan suspended sales and production after confirming the irregularities in three of its domestic plants, after the issue broke out on Sept. 29.

The irregularities led Nissan to recall more than a million cars, inspected by the unqualified personnel, in altogether 38 models – including the 10 that were manufactured for other brands such as Mitsubishi, Suzuki and Mazda.

Certified inspectors authorized by the Ministry of Transport must approve the vehicles before they are distributed in the Japanese market, according to the Japanese regulation.

Nissan made another public apology on Tuesday to its customers and interested parties, citing a lack of understanding of the laws and regulations related to the final process of vehicle inspection for the inconvenience and concern caused.

 

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