Japanese car companies fall into fraud scandals Nissan China responds: Joint ventures in China meet national standards


For Carlos Ghosn, a world-famous car manager who has created numerous glorious achievements for decades in the vertical and horizontal automotive industry, 2017 may be a turning point in his life.

When the Renault-Nissan Alliance won the first half of the world auto sales in the first half of this year and was preparing to launch an assault on the "world's number one sales" throne for years of premeditated plans, a series of questions about Japan's manufacturing caused by Japan's Kobelco fraud. Suddenly, it overshadows the eyes of global consumers.

At the same time, Nissan Motor Co., Ltd. has detected the use of unqualified personnel as factory quality inspectors by the Japanese government at the time when Japanese car makers are busy clarifying the connection with Kobelco. In the end, Nissan Motors was forced to stop production for two weeks to reset its inspection line.

On October 27th, the Japanese car company Subaru also publicly admitted that the company’s two factories use unqualified inspectors to “stash” vehicle inspections before leaving the factory. Even more frightening is that the company said that this behavior has continued for nearly 30 years. year.

A series of scandals involving two Japanese car companies broke out and Japan’s auto manufacturing industry is facing a major crisis. Although the incident occurred in Japan, a series of fraud scandals by Japanese companies cast a shadow over the development of Japanese joint ventures in China.

Dongfeng Nissan insiders admitted to the Times Weekly reporter that there has been no connection between the incidents of Japanese companies and the development of Dongfeng Nissan in China. The problem described by foreign media does not involve Dongfeng Nissan. At the same time, it also admits that public opinion may generate associations within a short period of time. However, Dongfeng Nissan has already established a system of its own, whether it is supplier or quality inspection. "Suzhou Kobelco has provided us with spare parts, but as we have verified, they do not involve Japan Kobelco, all products are in line with national quality standards." The above said.

Although Nissan China recently issued a document, Nissan’s joint venture in China meets the national standards and is not affected by the events in Japan. However, industry insiders also believe that Nissan Motor Co., Ltd., as the parent company, will always be the brand image of the joint venture in China, although it will not involve businesses in China, and will ultimately affect the development of Dongfeng Nissan in China. It is currently impossible to judge this effect. Is it positive or negative?

Japanese companies successively make fake

Prior to October 8th this year, “Made in Japan” is still a globally renowned label after Mitsubishi has tampered with its fuel efficiency data and Takada has tampered with airbag test data.

After October 8, after an incident of counterfeiting by an upstream material supplier was exposed, the "Made in Japan" shrine collapsed. The label was destroyed by a company called Kobe Steel of Japan. .

According to public information, Kobe Steel was established in 1905. It started as a steel manufacturing and forging industry. It is Japan's truly century-old company and is currently Japan's third-largest steel company, ranking among the world's top 500 companies. As an upstream industrial raw material supply company, many large Japanese automobile manufacturers such as Toyota, Honda, Nissan, Subaru, Mitsubishi, Mazda and Suzuki are all important customers.

On October 8th, Kobe Steel Co. of Japan suddenly issued a statement saying that the company discovered in its internal survey at the end of August that its three factories and one subsidiary have long-term organized and tampered with some aluminum and copper products inspection certificates to meet customers. Specifications, including data on dimensions and tensile strength. Surprisingly, part of the violations have started since 10 years ago. At least dozens of people, including managers, have participated in the falsification of data. This is collective misconduct. Although so far, it is not known that Kobelco has suddenly announced the purpose of the self-examination scandal, but the publication of the news has caused an uproar.

As an upstream supplier of basic materials, Kobelco’s falsification has a wide range of impacts. Among them, Japan’s auto companies have been hit hardest. According to statistics, Kobe Steel’s automotive aluminum sheet has a 50% share in the Japanese market and is used for automotive valve springs. Wire rods have a worldwide share of 50%.

Relevant data show that the joint venture company of Kobelco in China also mainly produces related wire rods. Whether the joint ventures in China are involved or not, there is no clear news to confirm. However, with the gradual disclosure of the details of the seizures of Kobelco, the increasing number of companies that may be involved will increase the confidence of more and more consumers in the recovery of Japanese companies.

Nissan cars worse

As Japan’s best-performing car company in recent years, Nissan’s performance in both the global market and the Chinese market has been very strong in recent years. According to the latest data, Dongfeng Nissan’s September retail sales of the Nissan brand reached 106,134 units, a year-on-year increase of 14.3%; and 110,272 units were sold, an increase of 7% year-on-year. At this point, Dongfeng Nissan Motor Co., Ltd. sold 750,967 vehicles in January-September, an increase of 8.7% year-on-year, and sold 752,696 vehicles, a year-on-year increase of 11.8%.

In fact, Nissan Motor Co., Ltd. has also organized internal investigations due to its exposure to a wide range of “improper” production activities. Nissan Motor Co., Ltd. broke the news with the Japanese media and said that after an internal investigation, the Nihon Automobile Body Group’s Shonan factory found that vehicle inspections conducted by technical personnel who did not have qualifications continued until October 11.

Japanese media reported that there are about 3,800 vehicles involved in improper production, but Nissan Motor believes that the relevant vehicles meet the safety standards and therefore will not issue recalls. Nissan News spokesman did not respond to this in a timely manner. At the press conference held on October 2nd, Nissan CEO Nishikawa Hiroshi said that from September 20th, only qualified technicians participated in the inspection. Subsequently, Japan’s land, infrastructure, and transportation departments have also started investigations of Nissan’s factories.

According to the "Road Transport Vehicles Act" of Japan, under normal production procedures, each vehicle must be subjected to final inspection by eight qualified personnel before leaving the factory. After the Ministry of Land, Infrastructure, Transport and Tourism of Japan in the routine inspection of Nissan's vehicle assembly plant, it was discovered that the safety inspection was actually performed without a qualified "undocumented person," while the "qualified seal" was borrowed publicly, after further investigation. Nissan found that the above problems existed in its six domestic vehicle factories.

After denial of fruition, on October 2nd, Nissan’s car attitude changed rapidly. President Nishikawa Hirose held a press conference to apologize, emphasizing that the customer’s safety will be used to recall the vehicle for re-inspection. Nissan will bear all costs, and the cost is estimated at 250. 100 million yen. The recall scope includes the 28 models of the GT-R, which was produced and sold in Japan from January 2014 to September 2017, and 10 models including Mitsubishi, Isuzu, Suzuki, and Mazda, and 1.16 million vehicles.

Regarding whether this recall involves the Chinese market, the Times reporter consulted Nissan China, the other party did not respond, and Dongfeng Nissan made it clear that it will not be involved.

Just after Nissan apologized and acted, on October 11th, the Ministry of Land, Infrastructure, Transport and Tourism once again found that Nissan’s factory in Shonan had unlicensed security checkers.

On October 19th under the condemnation, Nissan Nishikawa, president of Nissan, again publicly apologized and announced that it will recall an additional 34,000 cars produced from the 20th of the previous month to the Wednesday. Meanwhile, Japan produces about 1,000 new cars a day. All 6 factories were discontinued and the survey period was approximately one month. At the same time, the Ministry of Land, Infrastructure, Transport and Tourism of Japan decided to include Nissan Motor Co.'s new factory inspection system as a monitoring target, with an “indefinite period”. During the surveillance period, Nissan Motors must frequently submit inspections of all its factories to the Ministry of Land, Infrastructure and Transport.

With Nissan Motor's production in Japan all stopped, the loss caused by quality inspections caused the loss of more than 200 million U.S. dollars. The suspension of Japanese production is a big hit for the Renault-Nissan Alliance, which is expected to win the top spot this year. Although security inspections may not result in quality problems, the consumer's stability for Nissan cars is obviously to be greatly reduced.

Some analysts pointed out that if God Steel's counterfeit incident implicates Nissan's development, which is not expected by Ghosn, Nissan’s own internal quality inspection fraud may be the result of its cost-saving thinking.



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