Nissan Motor Co. Ltd share price down, expands vehicle recalls due to potentially dangerous air-bag inflators

Nissan Motor Co. revealed that it is expanding its recalls in the US by withdrawing more than 52 000 vehicles due to a defect with their air-bag inflators. According to the companys statement, the problem with the passenger air bags of the vehicles could trigger an explosion and send metal shards into the passenger compartment.

The vehicles recalled are located mainly in high-humidity states and territories. The level of humidity can accelerate the air bag propellants burn, which could blow apart the metal canisters into the passengers.

The National Highway Traffic Safety Administration announced on its website that the Japan-based auto maker is to recall some of its vehicles in the U.S., including Georgia, Florida, Louisiana, Alabama, Texas and Mississippi. The withdrawals will also affect Hawaii, Guam, Puerto Rico, Saipan and American Samoa, as well as the U.S. Virgin Islands. The number of models affected by the withdrawals amounts to 53 000. About 30 000 of the cars and SUVs involved in the recalls were part of the previous withdrawals carried out by Nissan.

The vehicles that are being withdrawn from the market feature air bag systems, which have been manufactured by the Japan-based supplier Takata Corp. The models affected include the Infiniti FX35 and FX45 models, which were manufactured in the period between 2003 and 2005, Infiniti I35 made in 2003 and 2004 and the Infiniti M35 and M45 model made in 2006. Other models, which are included in the companys recalls are the Nissan Pathfinder models made in 2003 and 2004 and the Nissan Sentra vehicles released in the period from 2004 to 2006.

Nissan shared in its statement that owners of the vehicles with defective air bags will be contacted and the faulty parts will be replaced free of charge.

Nissan Motor Co. Ltd lost 0.48% on Monday to close at ¥1 040.5 per share in Tokyo, marking a one-year change of +17.84%. The company is valued at ¥4.71 trillion. According to the Financial Times, the 22 analysts offering 12-month price targets for Nissan Motor Co. Ltd have a median target of ¥1 100, with a high estimate of ¥1 400 and a low estimate of ¥920.00. The median estimate represents a 5.21% increase from the previous close of ¥1 045.5.