Nissan recalls may affect RI

Nissan recalls may affect RI

Sandy Darmosumarto, The Jakarta Post, Jakarta

Nissan is considering recalling about 600 X-Trails and 60
Sentras in Indonesia due to defects in the cam and crank angle
sensors, said Dinne Musu, public relations manager of PT Nissan
Motor Distributor Indonesia.

The figures are based on the number of domestic sales. "Not
all X-Trails and Sentras have the defective component. Our office
is still waiting for verification on the engine and chassis
numbers in Indonesia to be recalled," Dinne told The Jakarta Post
on Tuesday.

Based on information from Nissan Motor Corporate Limited of
Japan, a malfunction in the components may cause a reduction in
engine power, stalling and difficulty in restarting the engine.

The move is part of a global effort by the parent company in
Japan to recall 2.55 million vehicles, namely 1.02 million cars
in Japan and 1.53 million in other regions, which include Asia,
Europe and the Americas, among others.

Previously, Nissan spokesman Jun Yoshihisa stated that this
was the biggest recall in terms of number of vehicles in the
company's history. An official report from Japan's Ministry of
Defense, Infrastructure and Transportation on Oct. 30 listed 24
Nissan models that may be recalled, two of which are found in
Indonesia.

"They include the completely built-up (CBU) versions of Nissan
X-Trail produced between 2000 and 2002 and Nissan Sentra, which
is also labeled Nissan Sunny, produced between 1998 and 2002,"
said Dinne.

"The CBU version of X-Trails were built in Thailand and Japan,
while that of Sentras were built in Japan," she added. "There are
no 2003 X-Trails being recalled because starting that year, X-
Trails entering the country were completely-knocked down." This
means the engine components are different from those in previous
Sentra models.

The recall will cost Nissan US$145.5 million in the 2003
fiscal year to next March. Dinne added that "the recall is part
of normal procedure. Therefore, Nissan Motor Corporate Limited
already has funds set aside in its 2003 budget to fully finance
the half-hour component substitution process for each car in
Indonesia and all over the world.

"Thus, the move will not affect the automaker's earnings
forecast," Dinne said.

Nissan Motor Distributor Indonesia said it may start recalling
cars in December. Dinne stated that "the worldwide recalling will
be done in stages, and is expected to be completed by the end of
March 2005."

Nissan Motor Distributor Indonesia claimed the recall was not
based on a complaint by buyers, but was a preventive measure to
stop engines in the specified models from breaking down.

However, Nissan spokeswoman Keiko Tanaka told Agence-France
Presse that the company had received its first complaint in
December of last year but it took until Oct. 30 to analyze the
problem and determine how to fix it. Nissan said there had been
no injuries or accidents linked to the defects.

In Singapore, details of the recall is more precise as Nissan
Motor Co. Ltd. has clearly outlined the models, engine types,
chassis numbers, production dates and the number of cars affected
by the defects in the island-state. Contact persons and telephone
numbers, to which customers can consult on the recalls, have also
been given out.

When asked about the difference in service, Dinne commented
that "Singapore may have received the news earlier".
Additionally, she stated that Nissan Motor Distributor Indonesia
would make similar information available as soon as possible.