Nissan to Recall 150,000 Cars After Uncovering More Inspection Failures

(Bloomberg) -- Nissan Motor Co. is planning to recall 150,000 vehicles in Japan after uncovering more failures in its final vehicle inspection process, dealing another blow to the carmaker whose former Chairman Carlos Ghosn is detained over alleged financial crimes.

The new problems include inappropriate tests of steering and brakes, the carmaker said in a statement Friday. Nissan has been under scrutiny since last year’s discovery of noncompliance in the final vehicle inspection process at its plants in Japan.

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Wrongdoings Nissan has found so far include allowing unauthorized workers to certify vehicles, conducting exhaust emissions and fuel economy tests under conditions that deviated from the prescribed testing environment, and tweaking measurement values. It has recalled a total of 1.14 million vehicles over the issues.

The scandal is another embarrassment for the carmaker, with Ghosn set to be indicted on Monday. In the first sign of blowback from the scandal for Nissan, the carmaker is also set to be indicted for breaching Japan’s financial instruments and exchange act by making false statements on securities reports, the Nikkei newspaper reported.

To contact the reporter on this story: Ma Jie in Tokyo at jma124@bloomberg.net

To contact the editors responsible for this story: Anand Krishnamoorthy at anandk@bloomberg.net, Ville Heiskanen

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