Minister of Economy, Trade and Industry Saito said it was "extremely regrettable" that Nissan Motor Co. received a recommendation from the Japan Fair Trade Commission to prevent a recurrence of the issue, accusing it of unilaterally lowering delivery prices to subcontracted parts manufacturers. In addition, the company made it clear that it requested the company to thoroughly improve its internal systems to ensure compliance with laws and regulations.
The Fair Trade Commission announced on the 7th that Nissan Motor Co., Ltd.'s unilateral reduction of approximately 3 billion yen in payments to more than 30 subcontracted parts manufacturers at the time of delivery violates the Subcontract Act. We have issued recommendations to prevent recurrence.
Regarding this, Minister of Economy, Trade and Industry Saito said at a press conference after the Cabinet meeting on the 8th, ``In order for even small and medium-sized enterprises to achieve wage increases that outpace price increases, the public and private sectors are working together to optimize transactions throughout the supply chain. It is extremely regrettable that this has occurred."
The company also announced that it has asked
Nissan Motors
to thoroughly establish an internal system for legal compliance, regularly inspect the status of compliance, and promptly report on the status of its efforts.
He further stated, ``We need this to be an opportunity for the industry to further optimize transactions,'' and urged the industry to make efforts to prevent similar violations before they occur. He announced his intention to conduct an investigation and work to improve problematic transaction practices.