Nissan to recall one million March, Cube cars in Japan
 

Nissan Motor Co. said it would recall more than one million March and Cube compact cars in Japan to fix faulty fuel tanks, costing it about three 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 US 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 per cent by France's Renault SA PA , ended down 0.9 per cent at 1,263 yen on Friday, while the benchmark Nikkei average was up 0.14 per cent.

Source: [url=http://www.timesofmalta.com/core/article.php?id=257087]Times of Malta[/url]