Nissan Motor Co. ( NSANY ) recalled new sets of vehicles for the third time in December due to safety issues. The recall included 14,000 units of 2011 Infiniti FX, 2012 Infiniti M, and the 2011-2012 Nissan Frontier, Xterra, Pathfinder and NV due to faulty engine bolts.
The company has revealed that the defective bolts in the vehicles may break, leading to oil leaks and engine failure. It has begun the investigation on the vehicles, manufactured between June and September this year, after receiving several reports of bolts breaking.
Earlier in the month, Nissan announced that it would recall 34,000 units of Sentra compact cars due to a problem with their battery cables, causing the engines to stall. The recall included 2010 and 2011 model year vehicles that are equipped with MR-20 engines and manufactured between May 11, 2010 and May 22, 2010, and July 8, 2010 and October 25, 2010.
It also announced to recall 28,294 units of Juke small crossover SUVs due to a problem with their turbocharger boost sensor bracket that can break free from an air inlet tube resulting from a defective welding. The problem could cause the vehicle to stall that may lead to a crash.
The 2011 model year Jukes were manufactured between April 9, 2010 and May 12, 2011. Nissan has decided to check the brackets and replace them free of charge if necessary. It will start recalling the vehicles from January 9, 2012.
Automotive safety recalls were brought into focus by the media after Toyota Motors ' ( TM ) announcement of the largest-ever global recall of 3.8 million vehicles in September 2009, triggered by a high-speed crash that killed 4 members of a family.
Later on, a string of recalls has led Toyota to face numerous personal injury and wrongful death lawsuits in federal courts. The Transportation Department of U.S. also imposed a fine of $48.4 million on the company due to late recall of millions of defective vehicles.
Nissan, a Zacks#1 Rank (Strong Buy) company, posted a 12% fall in profit to ¥183.4 billion ($2.3 billion) in the first half of fiscal 2012 due to a strong yen that more than offset the positive impact from its recovery from the twin disaster in Japan in March. Sales inched up marginally by 1.1% to ¥4.367 trillion ($54.73 billion) during the period.
During the second quarter ended September 30, 2011, the company's profit ebbed 3% to ¥98.4 billion ($1.2 billion) from ¥101.7 billion in the same period a year ago.
Despite the disappointing results, the automaker lifted its annual forecast of profit to ¥290 billion from the previous outlook of ¥270 billion.