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Published On: Sat, Oct 14th, 2017

Automotive Global News: Nissan Rocked by Controversy

In recent years, many major auto manufacturers have been rocked by scandals and controversies. Volkswagen, for example, had a huge scandal in 2015 when it came to light that they were breaking emissions laws. They ended up having to pay billions of dollars in legal settlements and government fines. This may be the most notorious automotive scandal in recent years, worse than getting scammed buying a car on Craigslist, but Nissan has had its fair share of scandals recently as well. The scandals have hurt Nissan’s share price and reduced consumer confidence in the company. To learn more about the recent controversy surrounding Nissan, read on.

photo/ Pete Linforth

Japanese Recall Due to Missing Final Safety Check

In October 2017, Nissan announced it was recalling all the vehicles sold in Japan in the last three years due to safety check oversights. These vehicles were supposed to get a final safety check before they left the factory, but they did not. This means that everybody, even someone who attended online traffic school, is in more danger when driving a Nissan. The Japanese government has not levied any fines yet, and it is not believed that they will. There have not been any lawsuits filed yet, but there may be in the future. So far, it looks like this scandal has mostly hurt Nissan’s reputation rather than its bank account.

South Korean Government Alleges Qashqai Violating Emissions Laws

The British- built Qashqai is one of Nissan’s most popular sport utility vehicles. It was only introduced a few years ago, but it has made quite a splash. However, several months ago the South Korean government claimed that the car was violating emissions laws. This put Nissan in the same boat as the Volkswagen was when they had their own emissions scandal. The allegations are very similar: The new Nissan vehicle has a special device that modifies the emissions during an emissions test, but the car produces much more emissions when it is running on the street. It looks like Nissan will have to pay a fine to the South Korean government.

The Recent Nissan Scandals vs. the VW Scandal

While the recent scandals surrounding Nissan have hurt its reputation and cost the company money, they are nothing compared to the VW diesel emission scandal. The scandal, as previously mentioned, cost the company some twenty billion directly in lawsuits and fines. However, VW’s reputation took such a hit that sales of its cars, particularly the diesel versions, have suffered considerably. Nissan has not suffered anywhere near as much, and it does not look like they will unless they have a massive scandal the size of Volkswagen’s diesel emissions controversy.

Possible Financial Implications for Nissan

Besides a relatively insignificant fine from the South Korean government, the financial implications for Nissan are not that bad. Of course, it will cost them some money to recall the Japanese vehicles and check them properly. Also, their reputation has taken a slight hit recently. However, most experts feel that Nissan will be just fine in the long run.

What Nissan Could Do Differently in the Future

Nissan should learn from Volkswagens mess and work hard to avoid scandals in the future, especially emission scandals. Not only due such controversies attract fines from the government and cost money in the form of recalling cars, they hurt customer confidence. Nissan is generally a very well-respected automaker, and customer trust and confidence is very important to them. Nissan is known for having some of the highest brand loyalty in the automotive industry, as many people buy a Nissan straight out of CA traffic school and stick with the brand. However, this could change. The automotive industry is more competitive than ever, and automakers need every edge they can get to stay profitable.

Author: Anwar Hossain

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