TOKYO (Reuters) -Japan’s Nidec Corp, a serious producer of electrical motors, has changed its second-in-command and can select the following president from throughout the firm within the spring of 2024, it stated on Friday.
Jun Seki, president and chief working officer who as soon as held the chief govt place, will resign to take accountability for a deterioration within the firm’s earnings, Nidec stated.
Within the meantime, Vice Chairman Hiroshi Kobe will take over the position from Saturday.
The announcement comes after repeated makes an attempt to quell issues over discovering an acceptable chief to succeed founder and Chairman Shigenobu Nagamori.
At a information convention on Friday, Nagamori stated Kobe will solely serve quickly, as the corporate will select 5 vice presidents in April subsequent yr and appoint one in every of them to be the president in April 2024.
“As for why it took so lengthy for my successor, I take full accountability for that,” Nagamori stated. “Looking back, I used to be beneath the misunderstanding of discovering a greater successor exterior the corporate versus inside.”
Nagamori, 78, recruited Seki, a former Nissan Motor Co govt, in 2020 to assist Nidec change into a serious participant in parts for next-generation vehicles.
Seki grew to become CEO in June 2021 however was demoted lower than a yr later with Nagamori expressing dissatisfaction with the corporate’s enterprise efficiency and a fall in its inventory value.
Nidec’s automotive merchandise unit, which was led by Seki, this yr reported a first-quarter working loss, hit by COVID-19 lockdowns, a worldwide micro-chip scarcity in addition to excessive restructuring bills and growth prices. Nidec’s general working revenue was, nevertheless, basically flat for the quarter.
On Friday, Nagamori stated he “was shocked” by poor efficiency of the unit led beneath Seki, including the corporate won’t usher in folks from exterior the corporate to right away take excessive position sooner or later.
He additionally reiterated his remarks from an earnings name in July that he wished at hand over the reins in two years and denied hypothesis that he intends to stay within the position long-term.
Kobe, 73, has been with Nidec since its founding in 1973. Nagamori stated he has an “absolute belief” in Kobe whom he has recognized for 55 years and can work collectively to enhance the efficiency of the corporate.
Nidec’s shares have slumped 33% thus far this yr.
Reporting by Satoshi Sugiyama; Modifying by Edwina Gibbs and Kim Coghill
