Shares of Nidec Corp tumbled as much as 22.44% on Thursday, marking the steepest one-day drop in the company’s history, after it announced an investigation into allegations of improper accounting.
The Kyoto-based manufacturer — one of the world’s largest producers of mini and brushless motors used in hard drives, electric vehicles, and factory robots — revealed that an internal probe at its Chinese subsidiary, Nidec Techno Motor, uncovered potential malpractice tied to management.
Nidec said a newly established independent third-party committee will lead the investigation, noting that multiple documents suggest the irregularities may extend beyond Techno to other group companies.
This follows a June delay in filing its financial report due to concerns over “potentially erroneous declarations” of motor origin, which could have led to unpaid import tariffs.
Nidec shares are now down 10.61% year-to-date, compared with a 5.12% gain in the Nikkei 225 over the same period.
The company continues to expand internationally, most recently with the opening of its Qingdao Industrial Park in China, consolidating its motor and electronics operations into one facility.