Nidec, the world's largest precision motor maker, warned of up to ¥250 billion ($1.6 billion) in impairment charges from an accounting scandal that led to its founder's resignation late last year and now faces deeper regulatory probes. Third-party investigators identified over 1,000 improper practices, delaying financial revisions.
Building on the accounting irregularities that prompted founder Shigenobu Nagamori's resignation as chairman in December 2025, Nidec disclosed on March 4, 2026, potential ¥250 billion ($1.6 billion) impairment charges. The scandal has drawn scrutiny from Japan's Securities and Exchange Surveillance Commission.
A third-party investigation revealed at least 1,000 cases of improper accounting, likely requiring past financial statement revisions, though no timeline was given. Sources cited by Nikkei indicate regulators may probe further payments, possibly leading to criminal action.
Nidec's Tokyo Stock Exchange shares have declined, amplifying governance concerns in Japan's manufacturing sector. The company has not detailed resolution plans.
