Nidec President Mitsuya Kishida apologized to shareholders Thursday for accounting and quality fraud during the company's annual general meeting [1].
The apology follows a series of irregularities that have shaken confidence in the motor manufacturer's internal controls and product reliability. The company faces pressure to prove it can operate transparently without compromising the technical standards promised to its global clients.
The meeting began at 10 a.m. [2] at a hotel in Kyoto's Shimogyo Ward [3]. Kishida said the assembly regarding a wave of misconduct that emerged since last year, which included accounting fraud and quality irregularities across domestic and international operations [1].
According to company data, investigators confirmed more than 1,000 cases of quality fraud [4]. These violations included making changes to product designs and components without notifying customers [1].
Kishida said, "I deeply apologize" [5]. He said the company will "thoroughly uncover the problems and carry out fundamental improvements" [6].
To address these systemic failures, the company presented proposals for governance reform and a restructuring of the board of directors [1]. These measures aim to prevent a recurrence of the unauthorized design changes and financial misstatements that led to the current crisis. The proposals were presented to shareholders for a vote during the session [1].
The company's founder, Shigenobu Nagamori, was also present at the meeting as the firm seeks to stabilize its leadership and restore its reputation in the precision machinery market [1].
“"I deeply apologize."”
The scale of the quality fraud—exceeding 1,000 instances—suggests a systemic culture of bypassing protocol to meet deadlines or costs. By proposing a board refresh and governance overhaul, Nidec is attempting to shift from a founder-centric management style toward a more standardized corporate oversight model to regain the trust of international B2B customers.
