Nissan Motor Co. (OTCPK:NSANY) shares declined swiftly on Wednesday after news that the Japanese auto giant is recalling more than 300K vehicles.
According to a report from the NHTSA, the automaker is recalling 323,671 Pathfinder SUVs in the US after an investigation into a hood latch defect in models from 2013 to 2016. The defect, caused by dirt contamination on the bell crank lever pivot joint, was cited as significantly raising the risk of the hood flying open and blocking the driver’s view. Such an event clearly raises the risk of a crash as well.
According to the regulator, a remedy is currently being pursued by Nissan (OTCPK:NSANY), though no details on the plans to correct the issue have yet been released.
“When the final remedy plan is available, Nissan will mail final remedy notification letters and include a statement concerning reimbursement for the cost of obtaining a pre-notification remedy for a subject vehicle that was no longer under warranty at the time of a repair,” a statement read.
Shares of the Japanese auto giant declined by about 3% on Wednesday.
Read more on a recent recall at Japanese compatriot car company Toyota.