Calgary Herald

Nissan hires law firm to probe data falsificat­ion

- MA JIE

TOKYO Nissan Motor Co., the Japanese carmaker that was embroiled in a vehicle-inspection scandal last year, said it uncovered some instances of misconduct involving falsified data about exhaust emissions and fuel economy.

The data falsificat­ion, which occurred on 19 models across five plants in Japan, was found out when the firm was carrying out an internal check about employees conducting final inspection of vehicles, Nissan said at its Yokohama headquarte­rs Monday. The incident won’t lead to any recalls as the vehicles meet catalogue specificat­ions for fuel economy and emissions, according to the company.

Although the tests were not in line with Japanese government requiremen­ts, the incident may not be as threatenin­g as the emission scandal that engulfed Volkswagen AG. Testing of vehicle emissions rose to prominence globally after the European carmaker was caught fitting devices on its diesel vehicles that helped it overcome the standards. German authoritie­s are still scrutinizi­ng the automaker. Daimler is also under investigat­ion, and both face lawsuits in Germany and the U.S.

During the checks, Nissan found out that employees misreprese­nted temperatur­e and humidity data in the testing chamber and manipulate­d emission data on carbon monoxide and carbon dioxide. The automaker has hired a law firm to investigat­e the matter further.

Nissan’s announceme­nt, following an inspection debacle that led to the recall of about 1.2 million vehicles last year, is the latest in a string of compliance scandals at carmakers including Mitsubishi Motors Corp. and Subaru Corp. that has dented the reputation of Japan’s manufactur­ing sector.

Nissan dropped 4.6 per cent in Tokyo, the largest decline since November 2016, before the company held a press conference Monday. The stock has lost 11 per cent of its value this year.

Renault, which is the largest shareholde­r of Nissan, tumbled as much as 2.6 per cent initially, before recouping some of those losses.

Nissan CEO Hiroto Saikawa said last year he and other officials at the firm will take a voluntary pay cut after the car inspection crisis led to a vehicle recall in Japan and a reduction in its profit forecast.

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