Japanese motor manufacturer Nidec Corp announced on Wednesday that it has identified more than 1,000 cases of suspected quality irregularities involving unauthorized changes to materials, processes, and designs without customer approval [1]. These issues were discovered during an ongoing investigation into previously revealed accounting irregularities at the company [1]. The suspected quality problems affect both Nidec and its subsidiaries, with most cases related to home appliances and automotive products, and also include improper handling of test data [1].
Nidec has established an investigation committee composed of outside experts to examine the quality issues and aims to determine the facts and causes by the end of August [1]. The company stated that, so far, no issues have been identified that would have an immediate impact on product functionality or safety [1].
The latest revelations are expected to intensify scrutiny of Nidec's corporate governance, especially following the accounting irregularities that led to the resignation of founder Shigenobu Nagamori as representative director and later as honorary chairman [1]. Nidec President Mitsuya Kishida publicly apologized for the significant trouble caused by both the accounting and quality issues at a press conference in Tokyo [1].
The company had previously set up a third-party committee in September 2025 to investigate the accounting irregularities [1]. The emergence of quality-related problems during this process highlights ongoing challenges in Nidec's internal controls and oversight mechanisms [1].
CONCLUSION
Nidec's disclosure of over 1,000 suspected quality irregularities, alongside ongoing accounting investigations, has heightened concerns over the company's corporate governance. While no immediate safety or functionality risks have been identified, the situation is likely to have a significant impact on market confidence and regulatory scrutiny.