Story
Nidec Stock Tumbles Amid CEO Resignation, Planned ¥1 Trillion Impairment
Summary
Shares of Japanese motor giant Nidec Corp. extended a steep two-day selloff following reports of its CEO's planned resignation and a massive ¥1 trillion writedown linked to its struggling electric vehicle business.
Shares of Nidec Corp. (TYO:6594) plunged on Tuesday, deepening a sharp selloff as the company grapples with a severe governance crisis. The stock fell 3.0% to ¥2,270 amid reports of its chief executive's impending resignation and a potentially historic impairment charge that has shaken investor confidence.
Leadership in Turmoil
The latest wave of selling was triggered by reports that CEO and President Mitsuyasu Kishida plans to resign. This development follows news that Nidec's board had already resolved to dismiss Kishida at an emergency meeting on September 25, according to reports cited by Investing.com. The leadership change introduces significant uncertainty as the company navigates accountability issues related to its electric vehicle (EV) motor division and a recent accounting fraud.
Historic Writedown Rattles Investors
Compounding the leadership crisis is the prospect of a massive financial hit. Nidec reportedly plans to retroactively book an impairment charge of approximately ¥1 trillion ($6.2 billion) for the fiscal year that ended in March 2026. The charge is tied to losses in its e-axle traction motor business for EVs.
AdThis figure is reportedly several times larger than what the company had previously indicated and could be substantial enough to erase all profits Nidec has accumulated over the past decade. The scale of the potential writedown points to deeper-than-expected problems in a key strategic growth area for the motor manufacturer.
Regulatory and Market Pressures
Nidec's challenges are magnified by its current regulatory status. The company remains on the Tokyo Stock Exchange’s "Security on Special Alert" watchlist, facing a critical deadline for an internal control filing. This situation keeps the risk of a potential delisting at the forefront for investors.
The broader market environment provided no support, as Japan's Nikkei 225 index also declined amid concerns over rising global bond yields and oil prices. However, Nidec's steep decline was primarily driven by its internal governance and financial issues.
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