Nidec Founder's Final Exit: When Accounting Scandals Topple Titans

The man who built a $60 billion precision motor empire from scratch has finally walked away completely. Shigenobu Nagamori, founder of Japan's Nidec, resigned as chairman emeritus on Thursday, marking his total departure from the company he created 53 years ago.

This wasn't a graceful retirement. Nagamori, 80, had already stepped down as representative director and board chairman in December following accounting irregularities that sent shockwaves through the industrial tech world.

The Unraveling of a Manufacturing Giant

Nidec's troubles began surfacing last year when accounting discrepancies came to light during what the company called "rapid overseas growth." The fallout was swift and brutal: shares plummeted 22% following the irregular accounting probe announcement, Moody's began reviewing the company for a potential ratings downgrade, and the Nikkei 225 index dropped Nidec entirely.

For a company that supplies precision motors to everything from hard drives to electric vehicles, this represents more than just financial turbulence—it's a crisis of confidence in Japanese manufacturing excellence.

The Founder's Dilemma

Nagamori embodied the classic entrepreneurial success story. Starting Nidec in 1973, he built it into the world's largest precision motor manufacturer through aggressive expansion and acquisitions. His hands-on leadership style and relentless drive for growth became legendary in Japanese business circles.

But that same growth-at-all-costs mentality may have contributed to the company's current predicament. When organizations expand faster than their internal controls can adapt, even minor oversights can snowball into major scandals.

Ripple Effects Across Global Supply Chains

Nidec's stumble creates opportunities and concerns across the industrial landscape. Competitors in precision motors and EV components—from Samsung SDI to LG Innotek—may benefit from any market share shifts. But suppliers and partners who depend on Nidec's stability face uncertainty.

The timing couldn't be worse, with the electric vehicle transition demanding reliable, high-quality motor suppliers. Any disruption in Nidec's operations could ripple through automotive supply chains already strained by geopolitical tensions.