Nissan has admitted that emissions and fuel economy tests for its vehicles in Japan deviated from prescribed standards, with inspection reports based on altered data. The carmaker pledged a full investigation and committed to implementing measures to prevent future occurrences. The company is also investigating whether these discrepancies affect vehicles exported to international markets. While reassuring customers that all vehicles, except the GT-R sports car, comply with Japanese safety standards, Nissan explained the GT-R’s exclusion as a result of insufficient data for confirmation.
This revelation comes as a significant embarrassment for Nissan, tarnishing its reputation. While it doesn’t appear that Nissan deliberately manipulated the testing system, as Volkswagen (VW) did with its emissions software, the company admitted to poorly managed testing practices. The issue occurred across all but one of Nissan’s factories in Japan, indicating systemic failures rather than isolated incidents. This raises concerns about broader compliance and management oversight within the company.
Compared to VW’s deliberate emissions test cheating, Nissan’s misconduct seems to stem more from negligence than intentional deceit. VW designed software to deceive emissions testing systems, a “sin of commission.” In contrast, Nissan’s practices suggest a “sin of omission,” though the scale and duration of the discrepancies make it a serious matter. Analysts suggest that while damaging, this scandal might be less catastrophic for Nissan than VW’s actions were for the German automaker.
Nissan’s challenges are not new. Last year, the company recalled 1.2 million vehicles in Japan after regulators found that safety inspections did not meet domestic standards. This earlier investigation eventually led to the recent revelations about emissions and fuel economy testing. The recurrence of compliance failures underscores systemic issues that Nissan must address urgently to regain public and regulatory trust.
The scandal has already impacted Nissan financially, with its shares dropping over 4.5% following the announcement. It also highlights broader industry struggles with emissions and safety compliance, following high-profile cases like VW’s €1 billion fine for emissions cheating. Nissan now faces the task of repairing its reputation, strengthening internal controls, and ensuring its vehicles meet safety and environmental standards in all markets.
