TOKYO (AP) — Scandal-ridden Japanese motor maker Nidec Corp. released Friday the findings of a company investigation that found 844 cases of misconduct related to quality controls spanning the last decade.
Chief Executive Mitsuya Kishida bowed deeply at a news conference, apologizing to investors, group companies, customers and society overall.
“The entire company is working hard to review and improve our quality controls,” he said.
Most of the cases
involve changing product materials or manufacturing processes without approval. Others involved faking product tests and false labeling, such as where something originated, according to Nidec.
Company officials said almost all the cases were carried out by workers who felt intense pressure to achieve results and wanted to do a good job.
The investigation did not give details of the misconduct, which dated back as far as 2012. The investigation began after accounting fraud surfaced last year.
While noting the problems pertain to what’s “at the heart of a manufacturer,” Kishida also stressed that no safety problems have been found related to the wrongdoing so far, and there will be no massive recalls.
Nidec, which employs more than 100,000 people, makes motors of various sizes, used in a range of applications, including pumps, air conditioners and robotics, as well as sensors and electronic devices.
The motors also work as auto parts, including driver-assistance systems and heat management in vehicles.
The company was founded in 1973 in a little hut in the ancient capital of Kyoto by Shigenobu Nagamori, a billionaire who started a foundation to promote international research and innovations in engineering.
Nidec is the typical rags-to-riches story of small and medium-sized companies that form the core of Japan’s prized “monozukuri,” which means “making things” or manufacturing with care and pride.
The errant behavior appears to have begun as Nidec underwent rapid expansion, putting employees under pressure to be quick and cut costs.
Japanese society is relatively crime-free, and prides itself on harmonious behavior, as well as attention to detail. But some analysts say overly strict rules and standards lead to workers covering up mistakes on the factory floor.
In 2017, Kobe Steel acknowledged there were massive faked inspections, and fiber maker Toray admitted to data tampering. In 2016, Mitsubishi Motors Corp. said employees falsified fuel mileage data. The automaker had a massive auto defect cover-up scandal in the early 2000s.
Nidec stock, which has fallen to about half its value from five years ago, rose 5.7% Friday.
Senior Vice President Masayuki Minai promised to beef up governance and compliance efforts, making sure each worker feels accountable.
“Speak up. Bad news first,” he said in English.
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This version removes an incorrect reference to the company being based in Tokyo. It is based in Kyoto.
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Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama
