Japanese component manufacturer Nidec Corporation announced a major restructuring of its manufacturing operations after disclosing accounting irregularities and material weaknesses in its internal controls on 30 September 2026, as the scandal-hit company exposed further governance issues.

The company’s newly appointed CEO, Michio Kaida, announced that the company plans to sell off some of its underperforming automotive, industrial and household appliance component manufacturing operations, including its key electric motors operations, in order to restore its financial health and investor trust.

The company had already announced that it was in active discussions to exit its primary e-axle EV drive motor joint ventures in China and Europe, with GAC and Stellantis respectively, as part of its strategy to restore is financial health by selling off low-margin businesses while investing in its AI, semiconductor and energy sector operations.

US-based global investment firm Carlyle Group confirmed that it has agreed to acquire Nidec Components Corporation, Nidec’s electronic components subsidiary, for an expected JPY 103 billion (US$ 640 million), subject to customary regulatory approvals and other closing conditions. The company manufactures electronic components, including pressure sensors, switches, and torque sensors and encoders for a wide range of applications, including industrial and automotive.

Carlyle Group said the company it plans to acquire “has built a strong competitive position in its key markets, underpinned by the quality and reliability of its products, and benefits from secular tailwinds such as AI and industrial automation which are driving demand for its products.”