Japan’s President Nidec resigns due to low income

The logo of Nidec Corp is pictured during an earnings news conference in Tokyo, Japan July 25, 2018. REUTERS/Kim Kyung-Hoon

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TOKYO, Sept 2 (Reuters) – Japan’s Nidec Corp (6594.T), a major maker of electric motors, has replaced its second-in-command and will choose the company’s next chairman in the spring of 2024, it said. he declares. Friday.

Jun Seki, president and chief operating officer who once served as chief executive, will step down to take responsibility for the company’s deteriorating earnings, Nidec said.

In the meantime, Vice President Hiroshi Kobe will take over from Saturday.

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The announcement comes after repeated attempts to allay concerns over the search for a suitable leader to succeed founder and chairman Shigenobu Nagamori.

At a press conference on Friday, Nagamori said Kobe would serve only temporarily as the company will choose five vice presidents in April next year and appoint one of them as president in April 2024.

“As to why it took so long for my successor, I take full responsibility,” Nagamori said. “In retrospect, I had the false impression of finding a better successor outside the company rather than inside.”

Nagamori, 78, recruited Seki, a former Nissan Motor Co (7201.T) executive, in 2020 to help Nidec become a major player in components for next-generation automobiles.

Seki became CEO in June 2021, but was demoted less than a year later, with Nagamori expressing dissatisfaction with the company’s business performance and declining share price. Read more

Nidec’s automotive products unit, which was led by Seki, posted an operating loss in the first quarter this year, hit by COVID-19 lockdowns, a global shortage of microchips as well as restructuring expenses and high development costs. Nidec’s overall operating profit, however, remained essentially flat for the quarter.

On Friday, Nagamori said he was “shocked” by the poor performance of the unit led by Seki, adding that the company will not bring in people outside the company to take on the lead role immediately. coming.

He also reiterated his remarks during an earnings call in July that he wanted to hand over the reins in two years and denied speculation he intended to stay in the role long-term.

Kobe, 73, has worked at Nidec since its inception in 1973. Nagamori said he had “absolute confidence” in Kobe, whom he has known for 55 years, and will work together to improve the company’s performance.

Nidec shares have fallen 33% so far this year.

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Reporting by Satoshi Sugiyama; Editing by Edwina Gibbs and Kim Coghill

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