Nidec Corp. Faces Accounting Probe Amid Stock Decline

TOKYO — Nidec Corp., a leading Japanese manufacturer of electric motors, has announced the formation of an independent committee to investigate allegations of improper accounting practices within its group companies. This move comes after internal findings highlighted a 200 million yen lump-sum discount recorded by Nidec Techno Motor (Zhejiang) Co., Ltd., a Chinese subsidiary, in late September 2024. The discovery has raised concerns about broader accounting irregularities, including the timing of asset write-downs.

The investigation, initially led by the Audit and Supervisory Committee with external experts, suggested potential involvement or awareness by management across multiple entities. In response, Nidec has established a third-party committee in accordance with the Japan Federation of Bar Associations’ guidelines. The committee’s mandate includes verifying facts, assessing financial impact, identifying root causes, and recommending preventive measures. While the Techno Issue will be within the committee’s scope, trade and customs matters involving NIDEC FIR INTERNATIONAL S.R.L. will remain outside its purview.

In the wake of these developments, Nidec’s shares have experienced a significant decline. On September 4, 2025, Nidec shares were trading at 2,567.50 yen, down 552.50 yen or 17.71%. This follows a record plunge of 22% on September 3, 2025, marking the most substantial drop in the company’s history.

Despite the challenges faced by Nidec, the broader Japanese market has shown resilience. On September 4, 2025, the Nikkei 225 Index rose by 500.38 points or 1.19 percent to 42,439.27, reversing the previous session’s losses. The gains were led by index heavyweights and technology stocks, with notable advances in companies such as SoftBank Group, Fast Retailing, Toyota, and Honda. In the tech sector, Advantest and Tokyo Electron saw significant gains, while in the banking sector, Mizuho Financial and Sumitomo Mitsui Financial advanced.

Nidec Corp., headquartered in Kyoto, Japan, is a world leader in the manufacturing of motors, supplying a range of products for home appliances, automotive markets, and other industries. As the company navigates through this challenging period, it has pledged full cooperation with the investigation and will disclose any material findings as they arise.