Friday, 20 October 2017

Nissan has suspended production in Japan


Car giant Nissan is expected to halt production in Japan for two weeks after the company's flawed vehicle quality inspection process was exposed. This is in addition to around 1.16 million vehicles which have also been recalled.

Local authorities who were carrying out checks across Nissan's six manufacturing plants in Japan, have discovered that some unqualified workers were carrying out quality checks for vehicles being sold in the country.

The manufacturing plants produce approximately 1000 vehicles daily between them. A media report also suggests that Nissan may have been carrying out improper inspection processes for up to 20 years but as of yet this has to be properly substantiated.

To get to the bottom of it all, Nissan will suspend domestic production in all of its Japanese plants for an initial period of two weeks whilst further investigations are undertaken. Although it is understood that cars currently being made for export will not yet be affected.

With an estimated cost to the company of around 25 Billion Yen (nearly £168M GBP) Suppliers to Nissan witnessed a drop on the stock exchange, including their strategic partner Renault SA which saw it's shares fall by 1.9 percent in it's stocks in Paris. 

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