Nidec, a major motor manufacturer, is at risk of reporting an impairment loss of 250 billion yen, as a third-party committee revealed extensive accounting fraud, implicating founder Nagamori in tolerating some misconduct.
Nidec Corporation, a leading motor manufacturer based in Kyoto, has disclosed findings from a third-party investigation into accounting fraud that reveal extensive irregularities across multiple group locations. The report forecasts that the expected impairment losses related to these frauds could soar to approximately 250 billion yen, particularly affecting their automotive business. The report identifies intense pressure from founder and chairman, Shigenobu Nagamori, to meet unrealistic performance targets as the primary driver behind the accounting misconduct. Though no direct orders from Nagamori to engage in fraud were documented, the report implies that he was aware of and condoned some irregularities, stating that he bears significant responsibility.
