Key facts
- Nidec discovered 844 instances of quality control misconduct over the past decade.
- The misconduct included altering product materials, faking tests, and false labeling.
- CEO Mitsuya Kishida apologized and attributed the issues to employee pressure.
- No safety issues or recalls have been identified as a result of the misconduct.
- Nidec's stock price increased by 5.7% following the announcement.
Japanese motor maker Nidec announced on Friday that its internal investigation uncovered 844 cases of misconduct related to quality controls over the past decade. CEO Mitsuya Kishida issued a deep apology at a news conference, attributing the issues to intense pressure on employees to achieve results and a desire to perform well. The misconduct included altering product materials or manufacturing processes without approval, faking product tests, and false labeling regarding product origin. The investigation, which began after accounting fraud surfaced last year, did not find any safety problems related to the wrongdoing, and the company does not anticipate massive recalls. Nidec, founded in 1973, is a major manufacturer of motors used in various applications, including automotive parts, pumps, and air conditioners. The company's stock rose 5.7% on Friday following the announcement. Senior Vice President Masayuki Minai pledged to strengthen governance and compliance efforts.