Nidec to Pause Acquisitions, Invest ¥130bn in Governance Overhaul After Fraud Probe

Nidec will suspend business acquisitions for the time being while it rebuilds its governance system after accounting and product quality fraud, President Mitsuya Kishida said in an interview Friday. Kishida said the company plans to spend ¥130 billion over five years on measures to prevent irregularities. Business acquisitions had been a growth driver for the Kyoto-based motor maker.

A panel of outside experts that investigated the accounting fraud concluded that excessive pressure from founder Shigenobu Nagamori on staff to meet performance targets was among the factors behind the irregularities. Kishida said Nidec had a corporate culture to pursue short-term profits.

“We will build a system that makes it impossible to commit irregularities regarding accounting and product quality control,” Kishida said.

On future operations, Kishida said Nidec will review its group businesses, including the possibility of ceding some operations to partner entities. He added that if the company regains trust, it wants to consider business acquisitions in new sectors.

Kishida said Nidec may focus efforts on data centers and humanoid robots, noting that artificial intelligence-related areas are expected to grow tremendously.

The interview with Kishida took place on Friday, May 31, 2026.