Nidec booked a net loss of $3.59 billion for the fiscal year ended March, swinging from a profit of $84.67 billion the previous year, primarily due to a $4 billion impairment loss in its auto-parts division. The Japanese electric motor manufacturer's auditor, PwC Japan, declined to endorse the financial statements, citing ongoing accounting irregularities involving falsified testing and inspection results. An independent investigation revealed that billionaire founder Shigenobu Nagamori pressured executives to meet unrealistic earnings targets, leading to improper accounting practices. Nidec replaced CEO Mitsuya Kishida with Chief Technology Officer Michio Kaida, following findings that Kishida made inappropriate financial reporting statements. The Tokyo Stock Exchange has placed Nidec on special alert, warning of potential delisting unless internal controls are improved. The company faces significant challenges ahead as it works to restore investor confidence and governance standards.

The impairment charges stemmed from deteriorating conditions in Nidec's electric-vehicle motor business and intense competition in China's household appliance motor market. The third-party committee's report detailed how various business units manipulated financial results through early sales recognition, avoided inventory losses, and altered asset valuation methods. Nagamori resigned as board chairman in December and as chairman emeritus in February.

Nidec, once a high-growth conglomerate built through numerous acquisitions, manufactures motors for hard disk drives, electric vehicles, and other applications, along with machine tools and data center cooling equipment.