Nidec Eyeing Management Shake-Up after Scandals
Kyoto, Sept. 28 (Jiji Press)--Nidec Corp. is considering a shake-up of its executive team, including its president, Mitsuya Kishida, in the wake of accounting and quality scandals at the major Japanese motor manufacturer, company sources said Monday. The Kyoto-based company is also mulling booking an impairment loss of at least hundreds of billions of yen mainly for fiscal 2025, which ended i...
Kyoto-based motor manufacturer Nidec Corp. is contemplating a major executive overhaul, including the possible removal of its president, Mitsuya Kishida, following accounting and quality control scandals, according to company sources. The firm is also preparing to record impairment losses totaling hundreds of billions of yen, primarily for fiscal year 2025, which concluded in March.
The accounting irregularities were first exposed in September 2023, with an independent investigation concluding in April 2024 that the total impact of the ploys to inflate net profits from April to June 2025 amounted to approximately 160.7 billion yen. Nidec's proposed impairment loss of 250 billion yen is primarily tied to its automotive parts division due to revisions in past financial statements.
A recent report from Japanese business magazine Diamond Online indicates that Nidec's extraordinary board meeting on Friday resulted in Kishida's dismissal, and the company plans to disclose an impairment loss of around 1 trillion yen for fiscal 2025.
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