Nidec Exposed for Over 1,000 Quality Violations, Including Unauthorized Design Changes and Data Falsification

Japanese electric motor manufacturer Nidec has been exposed for over 1,000 quality violations, including unilaterally altering molds, manufacturing processes, or product designs without customer approval, as well as falsifying inspection data. The company is a major global supplier of motors and drive systems, serving prominent automakers such as Tesla. The Tokyo Stock Exchange has placed Nidec’s shares under “special attention” status, putting the company at risk of delisting and regulatory penalties. Nidec stated that, to date, it has found no direct impact from these issues on product functionality or safety, nor has it received any reports of accidents or malfunctions caused by quality problems. The company has begun visiting customers individually to explain the investigation’s progress and issue apologies. Nidec plans to establish an independent investigation committee composed of external attorneys on May 13, aiming to uncover all facts by the end of August. These quality issues came to light during an internal investigation initially launched to address prior accounting fraud allegations. In 2025, Nidec was embroiled in an accounting scandal involving approximately ¥250 billion.