Nidec Identifies 844 Quality Misconduct Cases, Launches Fundamental Reform

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Nidec announced on the 4th the release of a report from the investigation committee established to look into suspected inappropriate practices regarding product quality, confirming a total of 844 cases of quality misconduct across multiple business divisions within the group, including 60 cases of significant quality issues. The committee pointed out that excessive performance pressure and insufficient quality governance combined to entrench an "unhealthy state" within the organization. Nidec stated it will proceed with measures to prevent recurrence, such as personnel disciplinary actions and revisions to quality regulations, and aims to correct past annual securities reports and submit the report for the fiscal year ending March 2026 at an early date. The committee chairman, Toshihiko Itami, noted that it is extremely serious that misconduct of this scale has come to light in the quality assurance area, following the accounting irregularities. While it was pointed out that founder Shigenobu Nagamori and other management had exerted intense pressure to achieve performance targets, no instructions or involvement in quality misconduct were confirmed. Nidec has been designated as a special attention stock by the Tokyo Stock Exchange due to the accounting irregularities, and faces delisting if internal management systems are not improved within one year.

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Quality misconduct and accounting irregularities lead to regulatory scrutiny and potential delisting.