Nissan's Car Safety Issues

            

Details


Case Code : CLOM018
Period : 2014-2015
Publication date : 2015
Subject : Operations
Organization : Nissan
Industry :Automotive
Countries : India
Length : 11 Pages

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Abstract: ICMR India ICMR India ICMR India ICMR India RSS Feed

The Nissan Datsun GO car received a zero-star safety rating for adult occupant protection in a crash test conducted by Global New Car Assessment Programme (NCAP) in 2014. The vehicle structure collapsed and was rated as “unstable” during the test, and raised concerns that this could lead to a high probability of life-threatening injuries for the occupant. Global NCAP publicly called on Nissan in 2014 to withdraw the model from the Indian market. Nissan initially defended the integrity of the vehicle but later backed down and announced that it would make changes in the next editions. The company also followed this up with action highlighting the importance of safety..

Issues:

1) Understand the issues and challenges related to safety in products manufactured by a company.
2) Understand the issues related to consumer behavior in emerging markets like India where consumers are ready to compromise safety for a lower price.
3) Analyze how Nissan coped with negative reports from NCAP.
4) Explore ways in which Nissan can frame an effective operational strategy to address safety concerns.


Introduction

The Datsun GO car model of Nissan Motor Company Ltd. (Nissan), launched in India in 2013, failed the crash test conducted in 2014 by the Global New Car Assessment Programme (NCAP). Following this, NCAP, a consumer-vehicle safety-testing body, asked Nissan to pull the model from the Indian market, saying it was “sub-standard”...

ABOUT NISSAN

Nissan was a Japanese multinational automobile manufacturer headquartered in Nishi-ku, Yokohama, Japan. Nissan sold its cars under the Nissan, Infiniti, and Datsun brands....

GLOBAL NEW CAR ASSESSMENT PROGRAMME (NCAP)

The Global New Car Assessment Programme (Global NCAP), a non-profit organization registered in the UK, aimed to meet the road safety challenge by encouraging worldwide availability of independent consumer information about the safety of motor vehicles...

DATSUN GO FAILS THE TEST

The Datsun Go had been designed and engineered specifically for sale in markets such as Russia, South Africa and India. The model was on sale in India since 2013 and in South Africa since 2014...

NISSAN BACKS DOWN

Finally in 2015, Nissan decided to back down from its position and to change its operational strategy...

THE ROAD AHEAD

According to analysts, despite India recording the highest number of road fatalities in the world, the share of life-saving features such as airbags in cars and SUVs was among the lowest in the world...

EXHIBITS

Key words:
Operations management, Operational strategy, Quality issue,Safety issue, Consumer behaviour, Emerging markets

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