Japan’s fair trade watchdog finds nissan in violation of subcontractor act, underpaying suppliers.

Japan’s Fair Trade Commission revealed on Thursday that Nissan Motor had breached the subcontractor act by underpaying approximately 3 billion yen ($20.26 million) to dozens of suppliers.

The investigation by the Japan Fair Trade Commission uncovered that Nissan had unlawfully deducted the amount from 36 suppliers during a span of approximately two years, starting from January 2021.

In response to the findings, the watchdog called for Nissan to establish a management system for subcontractor payments and urged the board of directors to pass a resolution acknowledging the issue and implementing preventive measures.

Nissan, the third-largest automaker in Japan by volume, stated that it had already fully reimbursed the suppliers for the unilaterally deducted funds. The company expressed a serious commitment to addressing the matter and pledged to enhance its inspection system to prevent such occurrences in the future.