Nidec Corp. (NJDCY,6594.T), a Japanese manufacturer of electric motors, announced that it has set up a third-party committee to investigate improper accounting across its group companies. The decision follows internal findings related to a 200 million yen lump-sum discount recorded by Nidec Techno Motor (Zhejiang) Co., Ltd., a Chinese subsidiary, in late September 2024. The issue—flagged by Nidec Techno Motor Corporation—raised concerns about broader accounting irregularities, including the timing of asset write-downs.
Initial investigations, led by the Audit and Supervisory Committee with external experts, revealed potential involvement or awareness by management across multiple entities.
Nidec noted that it has formed a third-party committee in line with the Japan Federation of Bar Associations' guidelines. The committee is tasked with verifying facts, assessing financial impact, identifying root causes, and recommending preventive measures. While the Techno Issue will be transferred to the committee's scope, trade and customs matters involving NIDEC FIR INTERNATIONAL S.R.L. will remain outside its purview.
Nidec has pledged full cooperation and will disclose any material findings as they arise.
In Japan, Nidec shares were trading at 2,567.50 yen, down 552.50 yen or 17.71%.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.