Renault-Nissan CEO says more recalls should be expected

Article by Andrew Christian, on October 29, 2014

Expect more recalls among carmakers as they try to keep customers happy and satisfied while making sure that quality issues would not create much of a buzz, according to Renault-Nissan chief executive Carlos Ghosn. He quipped that since carmakers are “fighting so hard to get the consumer for their brand,” they would not want to lose him due to a quality issue.

He told Bloomberg that currently, carmakers tend to recall the cars every time there is any doubt, since the last thing they want is a consumer dealing with quality problems. Speaking in his capacity as president of the European Automobile Manufacturers Association, Ghosn said recalls are an industry concern. Nissan is one of the carmakers affected by the current airbag recall scandal that hit the auto industry.

The airbags, made by Japanese supplier Takata Corp., are installed in millions of vehicles around the world. Millions of vehicles with potentially faulty air-bag inflators are already being recalled while industry executives expect more to be called back soon.

So far, four deaths in Honda vehicles in the United States are linked to the Takata airbags. General Motors and Toyota have issued a warning against having front passengers in cars fitted with the air bags. In the past two years, 10 carmakers have recalled 7.8 million cars with the potentially faulty airbag, according to the U.S. National Highway Traffic Safety Administration.

Toyota has already recalled over more than 875,000 vehicles during the period while Nissan has recalled 694,626 vehicles in the US in the past 18 months to fix the defects. Other carmakers affected by the recall in the US are BMW AG and Mazda Motor Corp. [source: Bloomberg.com]

Topics: renault, nissan, ceo, recall

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