Tokyo – Nidec Corp., one of Japan’s largest motor manufacturers, released the results of an internal investigation that uncovered 844 instances of quality‑control misconduct spanning the past ten years. The findings were announced at a press conference on Friday, where Chief Executive Mitsuya Kishida bowed deeply and apologized to investors, group companies, customers, and the broader public.
Scope of the misconduct
The investigation, which began after an accounting fraud case surfaced last year, revealed that the majority of violations involved workers changing product materials or manufacturing processes without proper approval. Additional infractions included falsifying product tests and mislabeling the origin of components.
Company officials said most of the wrongdoing was carried out by employees who felt intense pressure to meet production targets and wanted to deliver results quickly. The rapid expansion of Nidec’s operations over the past decade, combined with cost‑cutting pressures, appears to have created an environment where shortcuts were taken.
Impact on safety and recalls
Despite the breadth of the misconduct, Kishida emphasized that no safety issues have been identified so far, and the company does not anticipate massive product recalls. “The entire company is working hard to review and improve our quality controls,” he said.
Corporate response and future steps
Senior Vice President Masayuki Minai pledged to strengthen governance and compliance, urging employees to “speak up” and report problems early. “Bad news first,” he said in English, underscoring a cultural shift toward transparency.
Nidec, founded in 1973 in a modest Kyoto workshop by billionaire Shigenobu Nagamori, has grown into a global leader in motor technology, supplying components for pumps, air‑conditioners, robotics, sensors, and automotive systems such as driver‑assistance and heat‑management units. The company employs more than 100,000 people worldwide.
Industry context
The scandal follows a series of high‑profile quality‑control failures in Japan’s manufacturing sector, including Kobe Steel’s falsified inspections in 2017, Toray’s data‑tampering admission, and Mitsubishi Motors’ fuel‑efficiency fraud in 2016. Analysts note that while Japan’s reputation for meticulous craftsmanship remains strong, the pressure to cut costs and accelerate production can sometimes lead to lapses in oversight.
Market reaction
Following the announcement, Nidec’s stock, which has fallen to roughly half its value from five years ago, rose 5.7% on the day of the release, reflecting investor optimism that the company’s corrective measures will restore confidence.
The company’s next steps include a comprehensive review of its quality‑control procedures, tighter approval processes for material changes, and enhanced internal audit functions. By addressing the root causes of the misconduct, Nidec aims to reaffirm its commitment to the Japanese principle of “monozukuri”—the pride of making things with care and integrity.
Original reporting: Alexandria, VA News – WTOP News — read the source article.
