{"text":[[{"start":9.94,"text":"Nidec shares fell as much as 18 per cent on Monday following a report that the Japanese auto parts maker will book an impairment charge of ¥1tn ($6.3bn) and dismiss its boss as part of the fallout from one of Japan’s biggest accounting frauds."}],[{"start":27.02,"text":"The world’s largest motor manufacturer is planning to recognise the charge retroactively for the financial year to March 2026, according to business magazine Diamond."}],[{"start":37.74,"text":"According to the report, ¥600bn of the impairment losses were related to a more rigorous assessment of asset values for businesses under reform, including home appliances."}],[{"start":47.84,"text":"A further ¥300bn of charges came due to corrections of improper accounting issues, the report said, with Nidec having warned earlier in the year that ¥250bn of asset impairments might still be booked."}],[{"start":61.44,"text":"Diamond added that Nidec’s directors also voted to remove chief executive Mitsuya Kishida and could announce that decision as soon as this week."}],[{"start":69.76,"text":"The fresh writedowns are a blow to Nidec’s efforts to draw a line under an accounting fraud and about 1,000 cases of alleged manufacturing misconduct. The parts supplier to carmakers Volkswagen and BMW is battling to prove that internal controls and governance have been overhauled in time for October when the company faces the risk of being delisted."}],[{"start":90.6,"text":"Nidec did not immediately respond to a request for comment."}],[{"start":94.08,"text":"The Kyoto-based company, which supplies technology essential to drones, robots and electric vehicles, this year cut ties with its charismatic but divisive founder, Shigenobu Nagamori."}],[{"start":105.52,"text":"Nagamori’s hard-charging corporate culture, including asking employees to clean the toilets with toothbrushes, has been identified as a root cause of the company’s issues."}],[{"start":114.36,"text":"He stepped down as chief executive in 2024 but held the role of chair and then chair emeritus until February."}],[{"start":121.84,"text":"Founded in 1973 in a prefabricated hut in Kyoto by Nagamori and three fellow graduates, Nidec went on to make 75 acquisitions in 42 years to become the world’s dominant motor manufacturer."}],[{"start":133.44,"text":"However, an internal probe into a 2024 payment made by a Chinese subsidiary to a supplier quickly spiralled. In March, an independent commission established by Nidec found that widespread accounting fraud had taken place."}],[{"start":148.2,"text":"The share price has been on the slide over the past year and is now a third of its 2021 peak."}],[{"start":154.44,"text":"In responding to the crisis, Nidec this year proposed 11 new board members and said it was “implementing fundamental improvements to regain trust in our accounting, quality, governance and corporate culture”."}],[{"start":167.16,"text":"The company has also increased the number of independent directors to 10 out of 13, up from seven out of 11."}],[{"start":179.6,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1790569832_9393.mp3"}