Nidec unable to obtain auditor’s opinion on fiscal 2025 report by end of October

Motor manufacturer Nidec has announced it will not meet its deadline to receive an unqualified opinion on its fiscal 2025 financial report by the end of October. The company is struggling with an accounting scandal and is unable to complete the necessary procedures set by audit firm PwC Japan Group. These procedures include confirming if executives or employees were involved in irregularities.

Despite this, Nidec plans to submit an internal control document to the Tokyo Stock Exchange (TSE) on Friday. The TSE will use this document to decide whether to keep Nidec listed or delist it from the exchange, a process expected to take several months. In September 2025, Nidec discovered evidence of significant accounting problems, leading the TSE to place the company's stock under special alert.

Nidec has stated it will continue its efforts to obtain an unqualified opinion from PwC Japan and submit a report to the audit firm within November. The exact timeline for the auditing process remains uncertain. At a recent news conference in Tokyo, Nidec's President Michio Kaida apologized for the company's inability to obtain the unqualified opinion and pledged to take steps to resolve the situation.

A PwC executive also confirmed that the auditing procedures will be conducted as quickly as possible. Considering the findings of the accounting irregularities, including excessive buybacks and dividend payments, some individual shareholders have called for Nidec to sue former executives. Hiroshi Yoshii, an outside board director, suggested that the company may consider filing lawsuits to seek necessary compensation after investigating the full impact of the accounting issues following the conclusion of their corrective actions.