Nidec Considers Executive Changes After Huge Losses

Nidec, one of Japan's largest manufacturers of precision motors and a major supplier for the electric vehicle (EV) industry, is reportedly preparing to record a substantial writedown tied to its EV motor business and an accounting irregularity affecting its financial reporting.

According to media reports, the scale of the writedown could reach approximately one trillion yen, an unusually large figure that has alarmed markets and prompted intense scrutiny of the company's finances.

Following the reports, Nidec's shares plunged, hitting the daily downward trading limit, as investors reacted to both the scale of the potential losses and separate reports concerning changes in the company's leadership.

Multiple reports indicate that Nidec's board of directors voted to dismiss the company's president, a move described in some coverage as abrupt and difficult to fully explain given the circumstances surrounding the decision.

The company is reportedly also weighing broader executive reshuffles, suggesting that the fallout from the accounting issue and the EV motor losses may extend beyond a single leadership position.

Nidec has issued a brief public statement acknowledging aspects of the reporting, though it has not yet released a comprehensive account of the accounting irregularity, the precise size of the writedown, or the reasoning behind the board's personnel decisions.

Some reports characterize the situation as reflecting internal discord at senior levels of the company, raising questions about whether disagreements among executives contributed to the sudden management change.

The developments come at a sensitive time for Nidec, which has invested heavily in EV motor technology as part of its strategy to diversify beyond its traditional precision motor business and compete in the fast-growing electrified vehicle market.

Analysts note that a writedown of this magnitude, combined with an unresolved accounting problem and leadership upheaval, risks unsettling investors and could complicate the company's efforts to reassure stakeholders about its financial controls and management stability.

It remains unclear how the accounting irregularity was identified, what specific losses within the EV motor unit triggered the writedown, or what further governance changes Nidec may pursue in the coming weeks.

Market participants and analysts are expected to watch closely for an official, detailed disclosure from Nidec clarifying the situation and outlining any additional management changes.