Tokyo – Nidec Corporation announced Tuesday the resignation of its chairman and several other senior executives following a third-party investigation that revealed widespread accounting irregularities spanning multiple years. The company also warned that a potential impairment review could reach 250 billion yen ($1.6 billion), according to a statement released by the Japanese motor manufacturer.
The resignation of Shigenobu Nagamori, Nidec’s founder and former CEO, marks the culmination of months of scrutiny following the discovery of improper accounting practices. The third-party committee investigating the matter concluded that Nagamori “exerted strong pressure” on executives to meet ambitious performance targets, fostering an environment that led to the manipulation of financial records, according to reports from Nikkei.
Nagamori stepped down from his position as chairman, a role he continued to hold after relinquishing the CEO position in 2024 to Mitsuya Kishida. Kishida will now assume the additional responsibilities previously held by Nagamori. The company’s current CEO will take his place, Nidec stated.
The accounting issues first came to light in June 2025, with initial concerns raised over unpaid customs duties related to an Italian subsidiary. Further investigation in July uncovered irregularities in the accounting treatment of a temporary purchasing incentive at a Chinese subsidiary, estimated at approximately 200 million yen ($1.3 million). These revelations prompted the Tokyo Stock Exchange to place Nidec on notice for potential delisting if concerns over corporate governance were not addressed.
The situation was further complicated by downgrades from Moody’s Ratings, which warned of potential further downgrades if the company failed to restore investor confidence. Nidec had previously struggled to identify a suitable successor to Nagamori, who had a reputation for aggressive tactics, including hostile takeovers – a relatively uncommon practice in Japan. He briefly stepped down as CEO in 2022, only to reclaim the position a year later after expressing dissatisfaction with his chosen replacement, Jun Seki.
Nagamori, who built Nidec into a $15 billion company, acknowledged the concerns surrounding the company’s culture in a statement released alongside his resignation. “I founded Nidec and built it up, including its corporate culture. Yet, the fact that Nidec’s corporate culture is now being questioned has caused concern among the public,” he said. The remarks reflect the forceful management style – known as “Nagamori-ism” – that characterized his leadership and drove the company’s rapid expansion.
The company has not yet announced a timeline for the completion of the impairment review or detailed plans for corporate governance reform. The future of Nidec remains uncertain as it navigates the fallout from the accounting scandal and seeks to regain the trust of investors and stakeholders.