Nissan to recall 1 mln March, Cube cars in Japan

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Nissan to fix 1.02 mn cars in its second-largest Japan recall

TOKYO (Reuters) - Nissan Motor Co. said on Friday it would recall more than 1 million March and Cube compact cars in Japan to fix faulty fuel tanks, costing it about 3 billion yen ($25 million).

No accidents have been reported from the defect, Japan's third-biggest automaker said in a filing with the transport ministry.

Subject to the recall are 1,010,843 units of the two models manufactured between 1991 and 2000. There will be no related recall outside Japan because those vehicles used different materials for the fuel tanks, a Nissan spokeswoman said.

The recall comes at a challenging time for Nissan, whose sales in the main U.S. and Japanese markets are struggling to recover amid tough competition. Last month, the company lowered its profit forecasts for this business year as it predicted the first annual earnings drop in seven years.

The recall would be covered by reserves for quality issues set aside for the business year closing this month and would have no impact on its earnings forecast, Nissan said.

Vehicle recalls have been rising across the industry as automakers use more common components across a broader range of vehicle models to boost efficiency and reduce costs.

Shares of Nissan, held 44 percent by France's Renault SA, ended down 0.9 percent at 1,263 yen on Friday, while the benchmark Nikkei average was up 0.14 percent.

Source: Reuters India