Nidec Chief Apologizes to Shareholders for Scandals

Kyoto, June 18 (Jiji Press)–Nidec Corp. President and CEO Mitsuya Kishida at an annual general shareholders meeting Thursday expressed regret over 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,” vowing to rebuild the company. The meeting lasted nearly four hours, an unprecedented length, as Nidec executives were bombarded with questions from shareholders. 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 against him 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 approved all five management proposals, including scrapping the post of global group representative, previously held by Nagamori, and significantly increasing the number of outside directors to bolster corporate governance. “We received a clear message from shareholders that we should never reverse management reforms,” Kishida said at a press conference after the meeting. He added that “we will work proactively and seamlessly” to tackle product quality issues and for the submission of a report on its internal control system to the Tokyo Stock Exchange in order to maintain Nidec’s listing on the exchange. Regarding Nagamori’s responsibility for the scandals, Kishida said only, “I have never made an explanation that these problems were caused by the circumstances of somebody.” The accounting scandal came to light last September. In April this year, an investigation committee comprising outside experts released a 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 TSE last year designated Nidec as a stock requiring special attention for possible delisting. END [Copyright The Jiji Press, Ltd.]