Nissan Profit Down in 2nd Quarter
CBJ — Nissan’s second-quarter profit was down 3% in spite of increased sales due to costs associated with improper vehicle checks in Japan and a comprehensive international air-bag recall.
The aura of the scandal over systematic faulty inspections was definitely in the air during the company’s media conference in Japan. The incident has resulted in more than a million vehicles being recalled to be checked again in Japan, and has caused production at all six Nissan plants in that country to be halted.
Nissan Chief Executive Hiroto Saikawa took the time to apologize to everyone impacted: customers, dealers, partners and government authorities.
The Japanese automaker has acknowledged unqualified people had been carrying out vehicle checks but even more embarrassing is that many unqualified technicians continued to perform the testing for a period of time even after the scandal was uncovered.
Litigation costs in the U.S. associated with the Takata Corp. air-bag recalls has also cut deeply into profit-loss figures.