Mismatch Between Demand Forecasts and Production Capacity
First written in FY2016. 5 of 8 entries say "Worsened", first in FY2020. Latest entry: FY2023.
Nidec moved to the "Worse" side of this theme in 2020.
0 other companies' latest entry also says "Worsened".
- FY2023WorsenedAnnual report
「NIDEC has already built a production plant for EV motors and inverters in Serbia, Europe, plans to expand it further, and will strengthen its supply structure in Europe, where EV demand is expected to expand on the back of decarbonization.」
Continued advance investment in anticipation of EV demand, including the new building in Pinghu and the construction and expansion of the Serbia plant, has increased exposure to a mismatch between demand and production capacity. - FY2023-Q2WorsenedAnnual report
「日本電産自動車モータ（浙江）有限公司; Pinghu, Zhejiang Province, China; AMEC; automotive-products manufacturing plant; 45,000; 41; internal funds; August 2022; September 2023」
An additional ¥45 billion investment plan for an automotive plant in Pinghu, China, in anticipation of EV and automotive demand has increased exposure to a mismatch between production capacity and demand. - FY2022WorsenedAnnual report
「NIDEC plans to build a new building in the Pinghu area and is establishing a structure to prepare for expanded demand. It is also building production plants for EV motors and inverters in Serbia, Europe, and will strengthen its supply structure in Europe, where EV demand is expected to expand on the back of decarbonization.」
Advance investment in a new building in Pinghu and a plant in Serbia in anticipation of EV demand has increased exposure to a mismatch between production capacity and demand. - FY2021WorsenedAnnual report
「For standalone EV motors, production is scheduled to begin in Poland shortly, and NIDEC also plans to build production plants in Dalian and Guangzhou, China. In addition, it plans to build a production plant for EV inverters in Serbia, Europe.」
Production investment plans for EV-related facilities in Poland, Dalian and Guangzhou in China, and Serbia have increased exposure to a mismatch between demand and capacity. - FY2020WorsenedAnnual report
「For example, a production plant for EV traction motor systems, for which the market is expected to expand rapidly, is already operating in Zhejiang Province, China, and NIDEC plans to build additional plants in Liaoning Province and Dalian, China, Mexico, and Poland. However, if changes in competitors' development and market-entry plans or in demand for end products prevent NIDEC from securing the order volumes initially anticipated, this could have a significant impact on its operating results and financial condition.」
Advance investment in multiple factories for EV traction motors has increased exposure to a mismatch between production capacity and demand. - FY2018RestatedAnnual report
「NIDEC plans to expand capital investment primarily in emerging markets. If production capacity significantly exceeds demand, increased depreciation charges due to operating losses or write-downs of inventories resulting from excess inventory could adversely affect NIDEC's business, operating results, and financial condition.」
It reaffirms its policy of expanding capital investment primarily in emerging markets and the resulting risks of excess capacity and excess inventory due to a mismatch with demand. - FY2017RestatedAnnual report
「NIDEC plans to expand capital investment primarily in emerging markets. If production capacity significantly exceeds demand, increased depreciation charges due to operating losses or write-downs of inventories resulting from excess inventory could adversely affect NIDEC's business, operating results, and financial condition.」
It reaffirms the risk of a mismatch between production capacity and demand associated with expanded capital investment. - FY2016First statedAnnual report
「If production capacity significantly exceeds demand, increased depreciation charges due to operating losses or write-downs of inventories resulting from excess inventory could adversely affect NIDEC's business, operating results, and financial condition.」
It describes the risk of excess capacity and excess inventory associated with its policy of expanding capital investment, primarily in emerging markets.