Japanese motor manufacturer Nidec Corp. has revealed that an internal investigation uncovered 844 instances of misconduct related to quality control over the past decade. The findings were disclosed on Friday, and CEO Mitsuya Kishida publicly apologized to investors, partners, customers, and the public during a press conference. "The entire company is working hard to review and improve our quality controls," Kishida said, acknowledging the need for change. Most of the reported issues involved unauthorized changes to product materials or manufacturing processes, while others included falsified product tests and incorrect labeling, such as misrepresenting the origin of products.
According to company officials, nearly all of the misconduct was committed by employees who were under intense pressure to meet performance targets. The investigation, which began after accounting fraud was discovered last year, did not provide specific details about the misconduct, which dates back to as early as 2012. Kishida emphasized that no safety issues have been identified so far and that there will be no large-scale recalls. However, the company is now focusing on improving its governance and compliance structures to prevent similar issues in the future.
Based in Tokyo, Nidec employs more than 100,000 people and produces a wide range of motors used in various applications, including pumps, air conditioners, robotics, and automotive parts like driver-assistance systems and vehicle heat management. The company was founded in 1973 in Kyoto by billionaire Shigenobu Nagamori, who later established a foundation to promote engineering research and innovation. Nidec is often cited as a prime example of Japan's "monozukuri" philosophy, which emphasizes the pride and care in manufacturing goods.
The misconduct appears to have started during a period of rapid expansion, which placed pressure on employees to work quickly and cut costs. Japanese society is generally known for its low crime rate and emphasis on harmonious behavior and attention to detail. However, some analysts suggest that overly strict rules and high expectations may lead workers to hide mistakes rather than report them. Similar issues have been reported in other Japanese companies, including Kobe Steel, Toray, and Mitsubishi Motors, which have all faced scandals involving data manipulation and cover-ups in the past. Despite these challenges, Nidec’s stock rose 5.7% on Friday, and the company is now committed to fostering a culture where employees feel empowered to report problems promptly.
Japanese Motor Manufacturer Nidec Corp. Reveals 844 Cases of Quality Control Misconduct Over a Decade
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