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July 13, 2006

TRADE PUBLICATIONS REPORT NISSAN FIRE-RISK RECALL, COST

Edmonds.com and Automotive News report that Nissan North America could face a hefty price tag of at least $1600 per vehicle to remedy a defect in 96,800 Nissan Altimas and Sentras of the 2006 model year which may consume an inordinate amount of oil and cause engine fires. ``We have not made a blanket statement that we will replace all the engines, but we are saying we will make the customer satisfied - whatever it takes,'' a Nissan spokesman was quoted as saying ``Fix it, repair it, replace it - whatever is necessary.''

Nissan has not pinpointed the problem with the engines or determined how widespread it might be. At least 274 reports of excessive oil consumption and 24 engine fires have been reported to the company. Nissan ordered dealers to stop selling the vehicles on June 2. It issued the recall on June 13. Approximately 33,500 of the cars are in dealer inventory. But consumers have 57,700 of the cars. Those engines probably will be repaired at dealerships, requiring additional dealer labor charges to Nissan. Nissan has about 5,600 of the cars.

Posted by MVHAP at July 13, 2006 02:35 PM