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 in March this year. Its earnings report for the year is expected to be announced within this month.

The accounting scandal became known in September last year. In its final report released in April this year, an investigation committee made up of outside experts said that the overall impact of the company’s padding of its net profits through April-June 2025 from the irregularities came to about 160.7 billion yen.

Nidec has indicated that it would book an impairment loss of about 250 billion yen, mainly from its auto parts-related business, because of a revision of its past financial statements. The company is now likely to report a bigger loss.

Japanese business magazine Diamond Online reported Monday that Nidec at an extraordinary board meeting Friday decided to dismiss Kishida, 66, and that the firm plans to report an impairment loss of about 1 trillion yen for fiscal 2025.

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