Carlos Ghosn's hand-picked successor faces first major crisis with Nissan recall

Tokyo

CARLOS Ghosn, one of the car industry's most celebrated turnaround artists, saved Nissan Motor Co by managing himself out of numerous tight spots. Now his hand-picked successor faces a big test of his own, just six months into his tenure as Nissan's chief executive officer.

In what Nissan CEO Hiroto Saikawa, 63, has called a "shocking" lapse, the automaker announced on Monday that it's recalling 1.2 million vehicles in Japan after regulators discovered un-certified inspectors approved vehicle quality. The recall covers all models produced in Nissan factories in Japan for sale locally and will cost the company 25 billion yen (S$303 million).