Japan transport ministry raids two Nissan plants over improper checks

Nissan’s recalled all of the 386,000 new passenger vehicles it sold in Japan in 2016, roughly 10 percent of its global sales. (Reuters)
Updated 04 October 2017
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Japan transport ministry raids two Nissan plants over improper checks

TOKYO: Japan’s transport ministry said on Wednesday it had carried out spot inspections at two plants producing Nissan vehicles as part of a probe into final checks, days after irregularities forced the automaker to recall 1.2 million cars sold in Japan.
The two inspections on Tuesday followed inspections at four more factories last week, the ministry said. The initial four found the automaker had conducted unauthorized final vehicle checks for most domestic models that had not yet been sold, prompting Nissan to suspend new vehicle registrations with the government.
By Monday, Japan’s second-biggest automaker had discovered problematic checks of more vehicles, and said it would recall all new passenger cars sold in Japan over the past three years.
This is the second major instance of misconduct involving a Japanese automaker in less than two years, after Mitsubishi Motors Corp. said it tampered with fuel economy tests for some domestic-market models. While the recall is unlikely to have a significant impact on profitability, it is a blow to Nissan’s reputation just as it enjoys strong domestic sales, analysts said.
In inspecting Nissan’s factories, the ministry found names of certified technicians used on documents to sign off final vehicle checks conducted by non-certified technicians, two people with knowledge of the matter told Reuters.
It was possible the practice occurred at most or all of the six plants, said the people, who declined to be identified as they were not authorized to speak with media on the matter.
Vehicles sold in Japan must be registered with the government. As part of this process, during final checks, vehicles must undergo an additional procedure performed by plant technicians who can be certified by the automakers.
Nissan confirmed the latest two ministry inspections were at its Tochigi plant and at the Auto Works Kyoto plant owned by an affiliate.
“We are currently conducting an investigation into the nature of this vehicle inspection issue at our plants,” spokesman Nick Maxfield said in an e-mailed statement. A third-party is also involved in its probe.
Nissan’s recall includes all of the 386,000 new passenger vehicles it sold in Japan in 2016, roughly 10 percent of its global sales. It excludes Nissan-branded mini-vehicles produced by Mitsubishi Motors, which comprise roughly one-third of Nissan’s annual domestic sales.
Nissan shares have fallen more than 2 percent since Friday. They closed down 1.2 percent on Wednesday at ¥1,089.5.


Closing Bell: Saudi main index rises to 10,894

Updated 13 January 2026
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Closing Bell: Saudi main index rises to 10,894

RIYADH: Saudi Arabia’s Tadawul All Share Index extended its upward trend for a third consecutive day this week, gaining 148.18 points, or 1.38 percent, to close at 10,893.63 on Tuesday. 

The total trading turnover of the benchmark index stood at SR6.05 billion ($1.61 billion), with 144 listed stocks advancing and 107 declining. 

The Kingdom’s parallel market Nomu also rose by 81.35 points to close at 23,668.29. 

The MSCI Tadawul Index edged up 1.71 percent to 1,460.89. 

The best-performing stock on the main market was Zahrat Al Waha for Trading Co., with its share price advancing 10 percent to SR2.75. 

Shares of CHUBB Arabia Cooperative Insurance Co. increased 8.27 percent to SR23.04, while Abdullah Saad Mohammed Abo Moati for Bookstores Co. saw its stock climb 6.17 percent to SR50.60. 

Conversely, the share price of Naseej International Trading Co. declined 9.90 percent to SR31.48. 

On the announcements front, Arabian Drilling Co. said it secured three contract extensions for land rigs with energy giant Saudi Aramco, totaling SR1.4 billion and adding 25 active rig years to its backlog. 

In a Tadawul statement, the company said one rig is currently operational, the second will begin operations by the end of January, and the third — currently suspended — is expected to resume operations in 2026. 

Since November 2025, Arabian Drilling has secured seven contract extensions amounting to SR3.4 billion, representing 55 committed rig years. 

The three contracts have durations of 10 years, 10 years, and five years, respectively.

“Securing a total of SR1.4 billion in new contracts and expanding our backlog by 25 rig-years demonstrates both the trust our clients place in us and our ability to consistently deliver quality and reliability,” said Ghassan Mirdad, CEO of Arabian Drilling, in a statement. 

Shares of Arabian Drilling Co. rose 3.15 percent to SR104.70. 

Separately, Alkhorayef Water and Power Technologies Co. said it signed a 36-month contract valued at SR43.35 million with National Water Co. to operate and maintain water networks, pumping stations, wells, reservoirs, and related facilities in Tabuk. 

In October, Alkhorayef Water and Power Technologies Co. announced it had been awarded the contract by NWC. 

In a Tadawul statement, the company said the financial impact of the deal began in the fourth quarter of 2025. 

The share price of Alkhorayef Water and Power Technologies Co. declined 0.49 percent to SR120.70.