Nidec unveils improvement plan, delays release of quarterly results (updated)

Nidec

28/01/2026 08:23

Exchange put Nidec on 'special alert' over governance concerns

Internal probe found suspected accounting irregularities at unit

Nidec announces steps to improve governance, delays results

Adds quote, details from briefing, and background on share price and strategy

TOKYO, Jan 28 (Reuters) - Japanese electric motor maker Nidec 6594.T said on Wednesday it had submitted a plan to address stock exchange concerns over its governance after an internal investigation found suspected accounting irregularities at an overseas subsidiary.

The company also delayed the release of its October–December financial results, saying it would publish them more than 45 days after the end of the period.

The Tokyo Stock Exchange put Nidec on "special alert" in October and gave it one year to improve internal controls or risk delisting.

The Kyoto-based company outlined broad reforms on Wednesday, from overhauling how it makes business plans and strengthening governance to bolstering compliance and auditing systems, aiming to rebuild investor trust.

"We deeply apologise for failing to disclose our results properly and for being placed on the 'special alert' list, and we'll decisively pursue a fundamental overhaul of our internal management systems," CEO Mitsuya Kishida told a briefing in Tokyo.

The company warned that investigations by a third‑party committee and external experts continued, meaning the improvement plan did not yet reflect final findings and that further corrections to past accounts may be required.

In September, the company established an external committee to look into possible management involvement in improper accounting after an internal probe flagged issues at a subsidiary in China.

Kishida repeatedly said on Wednesday that Nidec's founder Shigenobu Nagamori, who left the board last month and took up the title of chairman emeritus, was not involved in management of the company.

Nidec shares have lost 28% in value since September. The company has staked much of its growth strategy in recent years on demand for AI-data-centre cooling systems and electric cars.

In its improvement plan, Nidec said a separate, internal investigation found that it had set profit and growth targets with a strong focus on beating market expectations.

Mid-term business plans were set in a top-down manner, contributing to internal pressure, it added. The company also acknowledged excessive performance management by some executives.

 (Reporting by Daniel Leussink. Editing by Tomasz Janowski and Mark Potter)

 ((daniel.leussink@thomsonreuters.com; Twitter: @danielleussink;))