Nidec quality fraud probe uncovers 844 violations tied to founder's pressure

A panel commissioned by Nidec reported 844 quality-related violations, including illegal material substitutions and fabricated inspection results, with 60 cases flagged as potentially unlawful. The probe traced the problem to the concentration of authority in founder Shigenobu Nagamori and relentless short-term performance goals that exceeded realistic capabilities. Misconduct has been ongoing since 2012, fostering a culture where employees deemed the breaches minor and inevitable.

More than 30% of surveyed staff cited pressure over delivery dates, sales and cost cuts as the root cause, and whistle-blowers received little support. President Mitsuya Kishida asserted that he, as current head, must explain the scandal, though no evidence shows Nagamori directly ordered the wrongdoing. The Tokyo Stock Exchange has issued a Security on Special Alert, threatening delisting if Nidec fails to demonstrate robust internal controls by the end of October.