Abstract

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.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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

Keywords

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