Nidec records $4 billion impairment after audit refusal amid accounting scandal

Nidec reported its consolidated results for the fiscal year ended March 2026, incorporating findings from a probe that identified pervasive accounting irregularities. The company wrote down ¥632.1 billion (about $4.2 billion) in asset impairments, leading to a ¥564.6 billion net loss, a sharp reversal from a revised ¥84.6 billion profit the year before. The impairments were split between ¥335.1 billion in the home-appliance, commercial and industrial segment and ¥231.0 billion in the automotive segment, pressures amplified by fierce competition in China’s motor market and slower EV growth.

PwC Japan refused to issue an audit opinion, citing the continued presence of executives who oversaw or were aware of the improper accounting, and a lack of sufficient evidence to confirm the loss calculations. The firm’s securities report was delayed, and the Tokyo Stock Exchange has placed Nidec under supervision, with a delisting risk if corrective measures are deemed insufficient. President Mitsuya Kishida stepped down after it was confirmed he had engaged in inappropriate financial-reporting conduct, leaving the company to rebuild its governance structures.