Nissan awaiting Japan's antitrust committee's verdict on underpaying contractors: Report
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.
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.
RELATED ARTICLES
Mercedes to reorganise motorsport division
Mercedes‑AMG GmbH plans to acquire part of its long-standing partner HWA AG. Both companies have signed a letter of inte...
Yamaha develops new Y-AMT system to enable seamless gearchanges
By consolidating shift operations into a lever on the handlebars, the Yamaha Automated Manual Transmission does away wit...
Visteon wins $3.1 billion new business in H1, digital cockpit and EV solutions drive growth
Of the new orders, displays account for nearly $1.8 billion including a large, curved OLED display for a luxury vehicle ...