March 7, 2024
YOKOHAMA, Japan – Nissan Motor Co., Ltd. (Nissan) today received a recommendation from the Japan Fair Trade Commission based on the “Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors” (“Subcontract Act”).
The recommendation regarding past transactions with suppliers to which the Act applies. A portion of the rebates received by Nissan from 36 suppliers subject to the Act were determined by the Commission as not in accordance with the provisions of Article 4, Paragraph 1, Item 3 of the Act. This totals 3,023,676,843 yen from January 2021 through April 2023. Nissan has already refunded an equivalent amount of rebates to suppliers. In addition, Nissan has already discontinued rebates in transactions with subject suppliers.
Nissan takes the recommendations from the commission very seriously. Work between companies and their suppliers can only develop for both parties if it is based on a relationship of strong trust. To properly carry out transactions with suppliers going forward, Nissan will strengthen its compliance system by reinforcing the periodical inspections system on compliance of Subcontract Act, providing thorough and periodic training to executives and employees involved in subcontracting transactions, and taking other measures to prevent recurrence.
Nissan sincerely regrets the inconvenience caused not only to the suppliers involved but also associated stakeholders.