Nissan awaiting Japan’s antitrust committee’s verdict on underpaying contractors: Report | Autocar Professional

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Nissan Motor noted on Monday that it is awaiting a final report from Japan’s antitrust committee, which local media reported had found the firm had cut down payments to several subcontracted part manufacturers on delivery, a report by Reuters noted. 

The commission will demand that Nissan take steps to stave off the occurrence of underpayments, as per public broadcaster NHK. 

Nissan said in a statement, “We’re currently waiting for final results from the commission,” refraining from offering additional comments on the matter. 

“We have already refunded the entire amount of upfront payment received from the supplier,” Nissan further noted. 

NHK said that the commission found that the automaker deducted a few percent from predetermined delivery payment to part manufacturers that made items like wheels and tyres, the newswire noted. 

The practice might have stretched back decades, Kyodo news agency said.

Roughly 3 billion yen (USD 19.98 million) worth of payment had unlawfully been deducted over several years, the report said, citing people familiar with the matter, reported NHK.

Japan’s Subcontractor Law prohibits the ordering party from unilaterally reducing the payment when the subcontractor is not at fault.
 

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