Wed, 05 Nov 2003

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.