Exclusive-french authorities have requested nissan automotive europe submit 2024 accounting and payment records, letter shows

The French government is scrutinizing Nissan's European business over concerns about timely supplier payments, requesting extensive financial records for 2024 and scheduling an inspection of its regional headquarters. This review, part of a broader French crackdown on late corporate payments, could result in administrative fines up to 2 million euros if violations of the 60-day payment rule are found. The investigation adds regulatory pressure on Nissan, which is currently executing a $3.4 billion global turnaround plan and recently reported a $535 million quarterly loss, following a previous finding of underpayment to Japanese suppliers.

Analysis

Nissan is facing heightened regulatory scrutiny in Europe as the French government investigates its supplier payment practices, requesting financial records for 2024 and scheduling an inspection of its regional headquarters on October 7. This probe, part of a broader crackdown by French authorities who found violations at nearly 40% of inspected firms in H1 2025, exposes Nissan to potential fines of up to 2 million euros for breaching the 60-day payment rule. The investigation compounds existing financial pressures on the automaker, which is executing a $3.4 billion global turnaround plan amidst a recent $535 million quarterly operating loss, its first in four years. This is not an isolated event, as it follows a previous finding by Japanese regulators where Nissan underpaid suppliers by 3 billion yen. While no wrongdoing has been confirmed, the inquiry raises significant questions about Nissan's working capital management and governance, adding execution risk to its target of achieving positive free cash flow by its 2026 financial year.

Key Decisions for Investors

• Investors should monitor the outcome of the French inspection on October 7, as a finding of violation would signal heightened working capital stress and add regulatory risk to the stock.
• This investigation adds a new layer of execution risk to Nissan's turnaround plan, warranting a reassessment of the company's ability to achieve its cost-cutting and positive free cash flow targets by 2026.
• The recurring nature of supplier payment issues, first in Japan and now potentially in France, raises governance concerns that should be factored into any relative valuation against automotive peers not facing similar regulatory headwinds.