France Investigates Nissan's Supplier Payments Amid Global Restructuring

France is conducting an investigation into Nissan's European operations to ensure timely payments to suppliers. The French government has requested detailed financial records from the automaker for the year 2024 as part of a broader initiative to ensure that companies pay their suppliers on time.

According to a letter dated August 19, the French Ministry of Economy's Competition Department notified Nissan Automotive Europe of this investigation. The letter stated that the investigation is part of a wider effort to ensure that companies pay their suppliers promptly.

As part of the investigation process, French authorities plan to inspect Nissan's regional headquarters in Montigny-le-Bretonneux, near Paris, on October 7.

Nissan is currently implementing a comprehensive global business restructuring plan aimed at reducing 340 million dollars in costs and restoring growth. This investigation comes at a critical time for the company.

There is currently no evidence to suggest that the Japanese automaker has engaged in any improper behavior. The letter requests that Nissan Europe submit accounting records, payment records, and other relevant documents for the period from January 1, 2024, to December 31, 2024, prior to the inspection at its regional headquarters.

The letter mentions that if any violations are found, Nissan could face administrative penalties, including fines. According to French law, companies must pay their suppliers within 60 days of issuing an invoice, or face a maximum fine of 200 million euros (approximately 236 million dollars).

This investigation by France and the contents of the related communication documents have not been previously reported. The documents do not mention the names or number of affected suppliers.

In June, it was reported that Nissan offered some of its suppliers in the EU and the UK a choice: if suppliers agreed to delay payments, they could receive higher payment amounts. This move was intended to help the struggling automaker free up short-term cash flow.

It is not uncommon for companies to request that suppliers extend payment terms to manage cash flow. It is unclear why regulators have chosen to investigate Nissan's related actions.

Nissan Automotive Europe stated in a statement that it had received a request for information from a French regulatory body regarding its payments to suppliers in France. However, no further details were provided.

The statement also said, "The request does not indicate that Nissan has engaged in any improper behavior. We are fully cooperating with the relevant regulatory authorities and are prepared to provide the necessary information and explanations." The statement did not name the specific regulatory body that made the information request.

France has intensified its scrutiny of payment delays between companies. In the first half of 2025, the French Competition Authority inspected 409 companies, with nearly 40% found to have violated regulations, resulting in a total of approximately 47 million euros in fines.

In contrast, during the same period in 2024 (January to May), French regulators inspected 248 companies, with about 28% found to have violated regulations, resulting in a total of approximately 30 million euros in fines.

This investigation by France adds to the challenges facing Nissan. Last year, Japanese regulators found that Nissan had underpaid dozens of suppliers a total of 3 billion yen (approximately 20 million dollars) over two years. Nissan had made up the shortfall before the investigation was made public, and Japanese regulators recommended that it strengthen its oversight of supplier payments.

A situation report from the European Commission noted that late payments can put financial pressure on small and medium-sized enterprises, increasing the risk of unemployment and even bankruptcy. The report showed that about a quarter of bankruptcies in the EU are related to late payments.

The EU requires member states to ensure that payments between companies comply with EU regulations—unless both parties explicitly agree and the terms are fair and reasonable, payments between companies must be completed within 60 days.

Nissan reported an operating loss of 535 million dollars in the first quarter of 2025 (April to June), the company's first quarterly operating loss in four years. Its business restructuring plan includes reducing approximately 15% of its global workforce and closing or consolidating seven factories.

Nissan aims to achieve positive free cash flow by the fiscal year 2026. Currently, the company is facing multiple pressures, including weak sales in the China and U.S. markets and issues left over from its previous expansion strategy.