TOKYO (dpa-AFX) - Nidec Corp. (NJDCY), a Japanese manufacturer of electric motors and related components, on Friday disclosed a report by an independent investigation committee into quality-related misconduct at several production and development sites and outlined measures to strengthen its corporate culture and quality-control systems.
The investigation found a series of quality-related issues, including breaches of 4M change rules, falsification and fabrication of testing and inspection results, violations of inspection and manufacturing conditions, and the use and shipment of substandard or unauthorized products. The report also identified issues involving product country-of-origin data and the preparation and management of records for components and materials.
According to Nidec, the investigation found that its management systems had failed to keep pace with the company's growth, while employees faced strong pressure to meet short-term business targets and reduce costs. Quality-related risks were not adequately assessed or monitored in some businesses, while business succession and production transfers were also poorly managed.
Cost-cutting pressure also left the company without enough personnel and other resources for quality assurance, while its quality-assurance function was not able to fully exercise its independent checking role. Nidec said these problems became intertwined, creating what the investigation described as an 'unhealthy state' that allowed the misconduct to continue.
The report also highlighted similarities with an earlier investigation into improper accounting, particularly Nidec's high-pressure work culture and failure to adequately listen to employee concerns. Nidec said these problems reflected deeper issues in management attitudes and corporate culture and should be addressed as fundamental issues in rebuilding the company rather than as isolated incidents.
As part of its response, Nidec will continue its corporate-culture reforms and provide quality-compliance training to all executives and employees. It will also revise its Global Quality Assurance Regulations to clarify that quality-assurance managers at individual business units and group companies have the authority to suspend product shipments.
Nidec's Global Quality Management Division will launch quality audits and monitor compliance with the revised regulations. The company has also installed opinion-collection boxes and revised reporting lines so that quality-compliance information can reach headquarters promptly and appropriate action can be taken.
For customers affected by the quality issues, Nidec said it is providing explanations and addressing individual cases. The company said it will continue to deal with each customer directly and responsibly.
Nidec said its review so far has found no material impact from the issues on its consolidated or other financial statements for past fiscal years. It plans to correct its securities reports and other filings for previous fiscal years and submit its securities report for the fiscal year ended March 2026 as soon as possible.
The company also plans to take appropriate disciplinary action against employees based on the facts identified in the investigation.
Looking ahead, Nidec said it will move toward more quality-focused management and return to the principles of monozukuri, emphasizing craftsmanship, skill and continuous improvement. It acknowledged that rebuilding trust will take time and said its executives and employees would work together to regain the confidence of customers and society.
In Tokyo, Nidec shares were up more than 5% at 2,611 yen on Friday.
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