Nidec Quality Assurance Investigation Finds 844 Issues Across Group

Automotive Businesses Accounted for 144 Cases

Four automotive-related business units and group companies accounted for 144 cases in total. Nidec Mobility Co., Ltd. (NMOJ) represented 125 cases, followed by the Automotive Existing Business Division (AMEC Organic) with 15, the Automotive Business Division (AMEC) with three, and Nidec Powertrain Systems Co., Ltd. (NPSC) with one. Nineteen of these cases were classified as Significant Quality Assurance Cases. The classification considered factors including involvement by officers or site managers, suspected violations of legal or certification requirements, potential recall implications, and risks to product safety, making these cases particularly important for the company’s corrective-action program.

Overseas Automotive Motor Rework Practices Disclosed

At an overseas AMEC Organic plant, nonconforming automotive motors supplied to automotive parts manufacturers underwent component replacement, reprocessing, reassembly, retesting, and other rework without obtaining customer approval. Products and components that should have been scrapped were also returned to production. The practices were intended to reduce scrap volumes and costs, while work records and traceability were insufficient. Some practices had continued since at least around 2012, but Nidec said they were all discontinued by February 19, 2026. As of the report’s disclosure, the company had not confirmed any field failures attributable to these practices.

Unapproved Recycled Material Use at an NMOJ Plant

At an overseas plant, 15% recycled resin was blended into a vehicle interior component without customer approval. The relevant customer agreement and drawing prohibited recycled materials, yet the practice continued from around August 2020 through September 2025. An internal inspection identified the issue, but the customer was not informed until May 2026 because the quality risk had been internally assessed as low. The disclosure highlights weaknesses in customer communication and escalation procedures, particularly where internal assessments may differ from contractual requirements governing materials, specifications, and manufacturing processes.

Country-of-Origin and Organizational Control Issues

Former Nidec Elesys Corporation also submitted a supplier certificate stating that a product was of Japanese origin without reassessing its country of origin after part of the production process was transferred to another country. The Investigation Committee identified broader organizational factors behind the quality problems, including strong pressure to achieve short-term business targets and reduce costs, insufficient staffing and independence within quality assurance departments, and a corporate culture that made employees reluctant to report bad news. At AMEC Organic, geographically and organizationally dispersed design, sales, manufacturing, and quality functions further weakened controls for escalating discrepancies.

Customer Approval and Quality Controls to Be Strengthened

The Investigation Committee recommended stronger mechanisms for verifying compliance with customer requirements during order acceptance, development, and the transition to mass production. It also called for tighter controls over engineering and manufacturing changes, rework, retesting, and other exceptional practices. Modified products should not enter mass production or shipment until evidence confirms that required customer notifications or approvals have been completed. The committee further recommended giving quality assurance managers authority to suspend mass-production transitions, halt manufacturing and shipments, isolate products, and report directly to higher-level quality organizations when significant quality or compliance concerns arise.

Nidec Outlines Quality and Compliance Reforms

Nidec said it will reinforce quality- and customer-first manufacturing and provide quality compliance training to executives and employees. The company plans to revise its Global Quality Assurance Regulations and clarify that quality assurance managers at individual business units and Group companies can suspend product shipments. It will also conduct audits through its Global Quality Management Division, maintain its Quality Feedback Channel permanently, and review quality-related reporting lines. Nidec is providing explanations to customers associated with affected products and discussing appropriate responses individually. Over the medium to long term, the company intends to expand its quality assurance workforce and strengthen cross-organizational management.

Product Safety Findings and Ongoing Customer Discussions

At a press conference held on September 4, Investigation Committee Chairperson Toshihiko Itami described the discovery of misconduct on this scale in quality assurance, a fundamental area for a manufacturer, as extremely serious following the earlier improper accounting issue. Nidec said it sincerely accepted the Investigation Committee’s findings and apologized to customers and other stakeholders. The company stated that its technical and quality verification has so far identified no incidents affecting product safety. However, discussions with customers remain ongoing regarding two cases involving product functionality, while explanations and responses continue on a case-by-case basis as relevant facts are confirmed.

Reform Program Targets Culture, Systems, and Traceability

Nidec released a presentation titled “Toward Nidec Reform” on September 4, explaining that the quality issues emerged as employees spoke up during corporate culture reforms launched in response to the accounting issues. Going forward, the company plans to review culture, systems, and processes in an integrated manner and move toward organizational management that puts quality and compliance first. It also intends to improve quality data linkage and visualization, strengthen traceability, establish cross-organizational oversight from development and design through delivery, and expand the quality assurance workforce to support more consistent controls across its global operations.

Investigation Originated From Earlier Accounting Issues

The quality investigation originated from allegations of improper accounting at Nidec and its group companies. Nidec established a Third-Party Committee in September 2025 to investigate accounting matters and created the Nidec Corporate Reform Committee in October to improve its internal management system. A Comprehensive Quality Inspection of production and development sites began on January 8, 2026, identifying potential quality assurance and country-of-origin labeling issues at multiple locations. Nidec subsequently established an Investigation Committee comprising outside experts on May 13. The latest report therefore represents a broader examination arising from the company’s ongoing corporate reform efforts.

Frequently Asked Questions

What did Nidec’s quality investigation identify?
The investigation identified 844 Quality Assurance Issues across the Nidec Group, including 60 Significant Quality Assurance Cases and 784 Non-Significant Quality Assurance Cases. Four automotive-related business units and group companies accounted for 144 cases, including 19 classified as significant. The report also identified six cases involving country-of-origin labeling and related issues. Nidec said its technical and quality verification had not identified incidents affecting product safety, although customer discussions remain ongoing for two cases involving product functionality. The company is implementing broader quality, compliance, customer-approval, reporting, and traceability reforms.