Nidec Chief Apologizes to Shareholders for Scandals

Kyoto, June 18 (Jiji Press)–Nidec Corp. President and CEO Mitsuya Kishida apologized at a general shareholders meeting on Thursday for the major motor manufacturer’s accounting and quality scandals. “We deeply apologize,” Kishida said during the meeting in the western Japan city of Kyoto. “We will thoroughly identify the problems and make fundamental improvements.” Several shareholders called for the company’s founder, Shigenobu Nagamori, to be held accountable for the scandals. One participant urged management to file a lawsuit for damages, while another argued that quality irregularities could be fatal to a manufacturer. Meanwhile, a different shareholder expressed hope for the company’s revival and long-term growth. Shareholders voted to approve all five management proposals, including eliminating the post of global group representative, previously held by Nagamori, and significantly increasing the number of outside directors to bolster corporate governance. The accounting scandal came to light last September. In April, a third-party committee released an investigation report pointing to “excessive pressure” from Nagamori to meet performance targets behind the scandal. In May, Nidec disclosed suspected quality-related misconduct, including changing materials and product designs without customer confirmation. The Tokyo Stock Exchange last year designated Nidec as a security on special alert for possible delisting. END [Copyright The Jiji Press, Ltd.]