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A Nissan electric vehicle is charged at a charging station in Yokohama. Image: REUTERS nfile
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Antitrust watchdog to warn Nissan for underpaying subcontractors

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law prohibits companies from unilaterally deducting payments to subcontractors once they have been agreed upon

It supposed make sense right, you agree on it and you pay it.

6 ( +12 / -6 )

Japan's antitrust watchdog plans to warn major automaker Nissan Motor Co for unilaterally reducing payments to over 30 subcontractors, a source familiar with the matter said Monday.

Let's detain the Nissan execs, keep them incommunicado for months, and interrogate them until we know exactly where all this theft of subcontractors labor went!

No that won't happen.

Let's just give them a warning to be more careful.

-3 ( +16 / -19 )

Disgusting company!

I’ll never buy or drive one the vehicles. Of course, some of their vehicles are actually made by Mitsubishi. Both companies are like two peas in a pod. Black peas!

-9 ( +9 / -18 )

Subcontractors are simply a buffer against loss of profits for companies like Nissan. Costs can always be displaced onto them while the promise of continuing business is held out to them. They are captured. And, though there seems to be a law against abuse, it is dealt with by the bureaucrats who are always lenient. And so it goes on. Until the next time.

9 ( +14 / -5 )

The subcontract law prohibits companies from unilaterally deducting payments to subcontractors once they have been agreed upon ...

That was dumb. There are other ways to rip-off your contractors without directly reducing payments.

Eikawa companies like Gaba will just coerce their instructors(who are all independent contractors) into agreeing to income reductions and penalties by threatening non-renewal if the contract/agreement isn't signed. I'm sure Nissan will adopt the same strategy.

9 ( +12 / -3 )

Yup, this is how Nissan Operates.

Just can't do it right.

-4 ( +9 / -13 )

@yokohamarides yes that is spot on !!

It's awful .

-8 ( +4 / -12 )

A warning? Yeah, that will show them! /s

7 ( +9 / -2 )

Nissan is an unethical company, just ask Carlos.

-2 ( +11 / -13 )

Standard operating procedure: force your suppliers to become 'black kigyo' so that you can be Snow White. The same sleight of hand happens inside organisations between contract workers and seishain. There's a lot of Tatemae out there.

-4 ( +9 / -13 )

Stingy Japanese company in the news? Well I never.

-5 ( +6 / -11 )

As the article says, this has been going on for decades. At least thirty years ago a former Nissan employee complained to me about just this.

I would be reluctant to say that the practice is only confined to Nissan, though. Our university for example uses similar tactics on 'their' staff.

By the same token, this is surely not a reason to boycott anyone, as it would simply increase the ratchet onto the subcontractors. I have driven and will continue to buy Japanese cars on their individual merits, not on company policy, whether Nissan, Toyota, Subaru, Honda, Mazda or Mitsubishi, etc.

1 ( +4 / -3 )

The Japan Fair Trade Commission plans to issue an advisory to prevent a repeat of the situation.

Seems like issuing an "advisory" to prevent a repeat of the situation is the problem in and of itself. Instead of simply issuing an advisory how about issuing a subpoena for all Nissan's records on the matter going back as far as the law allows and holding Nissan accountable! How about initiating a group action suit by the companies who were cheated by Nissan to seek compensation for ALL swindled losses going as far back as can be proven and add interest on top of that. Then hit Nissan with a fine as a %.

If the Japan Fair Trade Commission honestly wants to "prevent a repeat of the situation" they need to hit these companies in the wallet. Seems the subcontract law of 1956 needs to be updated and get some biting power added but we all know that ain't gonna happen when Nissan is a member of Keidanren (Japan Business Federation) and the LDP's pocketbook.

5 ( +5 / -0 )

Dirty Nissan needs to be Flushed.

-3 ( +1 / -4 )

It is all about politics and croonies

-3 ( +1 / -4 )

Nissan has been reducing the payments to certain component manufacturers by several percent from the previously determined amount, starting from a few years ago

You mean when Carlos. G. was held accountable for cheating the taxman ?

It seems he was the cheated for looking for findings.

-3 ( +1 / -4 )

If you want a laugh, check out the concept version of the Elgrand, called the "Hyper Tourer". It looks like a Japanese "Yankii"-style minivan meets the Cybertruck. Orange and black with a checkerboard fade, with wild checkboard wheels on it.

2 ( +2 / -0 )

Nissan's definitely not an innovator, pure legacy zero sum biz culture, obvious to all.

-5 ( +0 / -5 )

More pay please.

-2 ( +0 / -2 )

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