An independent commission concluded that Nidec, the world’s largest motor maker, inflated earnings by ¥160bn (about $1bn) over several years through multiple subsidiaries. The overstatement stemmed from pressure to meet profit targets, with staff forced to pad results and a shadow auditor reporting directly to founder Shigenobu Nagamori. The scandal represents Japan’s biggest accounting fraud in a decade.

Regulators warned that failure to overhaul governance by October could trigger delisting from the Tokyo Stock Exchange, crippling Nidec’s ability to raise debt and exposing it to shareholder lawsuits. Shares have tumbled 60% since early 2022, and four board members resigned after brief tenures. The company now proposes 11 new directors, raising independents to ten of 13.

The episode echoes past Japanese scandals at Olympus, Toshiba and KDDI, where aggressive target culture and weak oversight prevailed. Nagamori’s hard‑charging style, documented in internal emails that labeled missed goals as “sin,” fostered an environment where accountants delayed expenses and capitalised costs. Investors now demand that loyalty shift from individuals to the corporation, and Nidec must prove its reforms to restore market confidence among investors.