Japanese motor giant Nidec faces quality scandal

Nidec Corporation confirmed on Wednesday that it had identified suspected inappropriate conduct involving certain products, including unauthorized changes to materials, manufacturing processes and product designs during a broad internal quality inspection, News.Az reports, citing Xinhua.

The number of related cases may exceed 1,000 and involve products such as motors for household appliances and automotive components.

An internal investigation found that around 97% of the suspected cases involved modifications to molds, manufacturing processes and product designs without obtaining customer approval.

The remaining roughly 3% involved issues such as falsification of testing or inspection data, improper labeling of product origins and other irregularities, Nikkei reported.

Nidec said it is considering the creation of an investigative committee led by external experts to further examine the matter. The company added that, at present, it has not identified any issues that would immediately affect product functionality or safety.

The Japanese company, regarded as the world’s largest comprehensive motor manufacturer, has already faced scrutiny over a previous accounting scandal. The newly disclosed quality concerns are expected to place additional pressure on the company’s corporate governance practices.

According to Kyodo News, citing sources familiar with the situation, the suspected quality issues emerged during the ongoing investigation into accounting irregularities and involve both Nidec and several of its subsidiaries.

News.Az 

By Nijat Babayev