KYOTO (TR) – Scandal-plagued electronics component giant Nidec Corporation is bracing to report staggering financial losses on Wednesday, as the company reels from a massive web of accounting fraud and quality control misconduct, reports NHK (Sep. 29).
According to sources close to the matter, the company’s delayed earnings report will reveal huge losses stemming from the ongoing corporate scandals, blowing completely past the company’s previously projected ceiling of 250 billion yen.
Investigations into the tech giant uncovered multiple internal documents pointing to systemic accounting fraud. Management at both the headquarters and group companies were found to have been actively involved in the arbitrary manipulation of asset valuation timelines.
The exposure of the doctored books led to the resignation of Nidec founder Shigenobu Nagamori as representative director in December 2025.
Quality control issues
The corporate deception also extended to the factory floor. The company has been implicated in approximately 840 instances of inappropriate conduct regarding quality control, admitting to altering the design and manufacturing processes of components for home appliances and automobiles without customer consent.
The escalating fallout has plunged the company’s leadership into total chaos. On the 28th, Nidec announced it is considering a sweeping purge of its top executives, including President Mitsuya Kishida, who took the helm following Nagamori’s departure.
The potential ouster comes just months after Kishida was reappointed at a general shareholders’ meeting this past June, alongside a newly minted 11-member board that included nine external directors. With the company’s upper echelon facing a complete overhaul, the future leadership of the embattled tech giant remains highly uncertain.
