Nidec (6594) shares fall amid quality control and accounting irregularities concerns
Ongoing concerns regarding quality control misconduct and past accounting irregularities weighed on Nidec (6594) shares, which are trading down 3.1% at ¥2,664 today, from yesterday's close of ¥2,750.
This movement follows Nidec's May 2026 admission of "inappropriate conduct" involving certain products. This disclosure came after Nikkei Asia reported over 1,000 instances of quality tampering, including unauthorised changes to materials, processes, and designs. Concurrently, the company announced a ¥160.7 billion hit to its net profit from accounting revisions spanning 2020 to 2025, with the final report on the accounting investigation released in April 2026.
Quality problems and accounting irregularities have exerted continuous pressure on Nidec's share price, as reported in Nidec (6594): Quality and Accounting Concerns Continue to Weigh on Share Price. Investors continue to monitor the long-term impact of these problems on the company's financial performance.
Concerns Over Corporate Reliability Weigh on Share Price
Nidec is a global manufacturer handling a wide range of motors and their application products, from precision small motors to industrial large motors. Nidec's motors are incorporated into many devices around us, such as smartphones, home appliances, automobiles, and factory equipment, and their high performance and reliability are highly regarded by client companies. In particular, with the advancement of automotive electrification and robotisation, the company's motors have become important components supporting the industrial base.
The main reason for today's stock price decline is the company's admission of "inappropriate conduct" concerning some of its products. This was announced after Nikkei Asia reported over 1,000 instances of quality falsification, including unauthorised changes to materials, processes, and designs. Such quality management issues directly impact product reliability and brand image, raising concerns about customer attrition and a potential decline in future orders. Furthermore, the public announcement of a ¥160.7 billion hit to net profit due to accounting corrections between 2020 and 2025 has also shaken investor confidence.
These concerns regarding quality management and accounting have put pressure on Nidec's stock. As a result, on 28 May 2026, the company's shares are trading at ¥2,664, a 3.1% decrease from yesterday's closing price of ¥2,750.
This is like a renowned restaurant claiming to use the finest ingredients, only for it to be discovered that they had secretly used cheaper substitutes without authorisation. Once lost, customer trust is not easily regained, and the damage to its reputation could affect the business for a long time.
Nidec
Nidec Corporation (6594) is a Japanese industrial powerhouse, manufacturing a diverse range of motors, electronics, and optical components for global markets. Its extensive product portfolio spans medium and large-sized motors, precision motors, and motor-related units, alongside automotive components, mechanical and inspection equipment, and various electronic devices and sensors. These products find application across numerous sectors, including robotics, IoT, home appliances, logistics, agriculture, IT, office automation, mobile devices, healthcare, and industrial machinery. The company was established in 1973.