Nidec President Kishida Mitsuya (岸田 光哉) has decided to resign, reportedly amid pressure from outside directors. There is also a view that the substantial increase in projected impairment losses in the automotive business will affect the company’s future management.
Nidec has decided that its presidency will change from Kishida Mitsuya (岸田 光哉) to Kaida Rifu (戒田 理夫), and announced that Kishida will resign. Kaida is scheduled to become representative director, with the appointment expected to be formally decided following an extraordinary general meeting of shareholders to be held by year-end.
The background includes expectations that losses related to accounting and quality misconduct will increase substantially, while calls from outside directors to hold management accountable had been growing stronger. Kishida was involved as the executive responsible for the automotive business.
In the automotive business, sales of EV components such as drive units were weak, forcing the company to scale back the business through structural reforms. Impairment charges were expected to be substantially reassessed ahead of the financial results announcement, and the amount of the losses was subsequently reported to be expected to increase further.
A third-party committee’s investigation credited Kishida with making a certain level of effort, including recommending appropriate responses, while also pointing to the influence of “Nagamori management,” shaped over many years by Nagamori Shigenobu (永守 重信), as part of the background.