French officials are investigating whether Nissan’s European arm honoured supplier payments on time and have requested detailed financial records for 2024, Reuters has reported.
According to the news agency, a letter dated 19 August from the competition division of the French economy ministry notified Nissan Automotive Europe of the review, saying it formed part of a wider initiative to ensure firms settle supplier invoices promptly.
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The correspondence indicates authorities intend to carry out an inspection at Nissan’s regional headquarters in Montigny-le-Bretonneux, near Paris, on 7 October.
The inquiry arrives as Nissan implements a global restructuring intended to cut $3.4bn in costs and restore growth.
In a recent move, the company said it would centralise its design operations, closing studios in San Diego and São Paulo.
However, the Japanese auto giant has not been accused of any misconduct, the report said.
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By GlobalDataAccording to the letter, Nissan Europe must provide accounting and payment documents for the period 1 January to 31 December 2024, along with other materials, ahead of the planned inspection.
The company was warned it could face administrative sanctions, including fines, if breaches are identified.
French law requires firms to pay suppliers within 60 days of an invoice; breaches can attract penalties of up to €2m ($2.36m).
The ministry’s correspondence did not identify which suppliers might be affected or how many are involved.
In June, Reuters reported that Nissan had offered some suppliers in the EU and the UK the option of higher payments in exchange for accepting delayed settlement, a measure that would alleviate short-term cash pressures for the carmaker.
Nissan Automotive Europe told Reuters it had received a request for information from a French authority about payments made from its European headquarters, but did not elaborate.
A spokesman for the competition department of the economy ministry declined to comment to Reuters.
The investigation is the latest problem for Nissan. Japanese regulators last year found the company had underpaid dozens of suppliers by around Y3bn ($20m) over two years.
The company reimbursed the amounts before that probe became public, and Japanese authorities advised it to strengthen oversight of supplier payments.
The European Commission has warned that late payments can place heavy strain on small and medium-sized businesses, increasing the risk of job losses and insolvency. It estimates roughly a quarter of bankruptcies in the EU are linked to late payments.
