Nidec Corporation, the scandal-ridden Japanese electric motor manufacturer, has released the findings of its quality control investigation, revealing that a total of 844 cases of misconduct were discovered over a period of a decade, dating back to 2012. Most of the cases related to changes in product materials, designs, and manufacturing processes without customer approval, as well as falsifying product tests and using false labels.
Nidec, founded in 1973, employs more than 100,000 people worldwide in the production of electric motors of all sizes, including automotive systems. Prior to this investigation, it had been found tohave engaged in improper accounting practices, involving inflated raw material prices, aggressive revenue recognition, and deferred expenses across global subsidiaries, which investigators blamed on pressure from excessive, short-term performance and profit targets set by top management. The company faces potential write-downs amounting to JPY 250 billion(US $1.6 billion) as a result.
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At the news conference, the company’s CEO, Mitsuya Kishida, apologizing to investors, stakeholders, and customers for the failings, saying, “the entire company is working hard to review and improve our quality controls.”
Mitsuya Kishida pointed out that no safety problems have been found so far by the quality control investigation, and there will be no massive recalls.
