Japan's antitrust watchdog set to reprimand Nissan for payment reductions to contractors

Nissan Motor in focus: Nissan Motor disclosed on Monday that it is awaiting the final report from Japan's antitrust watchdog, which reportedly found the automaker culpable of unilaterally decreasing payments to numerous subcontracted parts manufacturers upon delivery.

According to local media, the commission will urge Nissan to implement measures to prevent the recurrence of such underpayments, as reported by the public broadcaster NHK.

"We're currently awaiting final results from the commission," Nissan stated in a brief comment, refraining from elaborating further on the ongoing investigation.

Nevertheless, Nissan acknowledged the investigation's existence and stated, "We have already refunded the full amount of the upfront payment received from the supplier," referring to the money unilaterally reduced, which Nissan terms as upfront payment.

NHK indicated that the commission discovered Nissan's deduction of a few percentage points from the predetermined delivery payment to parts manufacturers responsible for producing items such as tires and wheels. 

The practice, according to Kyodo news agency, may have extended back decades.

Sources familiar with the matter cited by NHK reported that approximately 3 billion yen ($19.98 million) worth of payments had been unlawfully deducted over several years. 

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

(With Reuters Inputs)