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TOKYO (Reuters) – Japan’s Nidec Corp, a maker of primary electric motors, has replaced its second-in-command and will be the company’s next chairman in spring 2024, it said on Friday.
Jun Seki, president and chief executive officer who once held the position of chief executive, will step down from his position over the deterioration of the company’s earnings, Nidec said.
Meanwhile, Vice President Hiroshi Kobe will take office starting Saturday.
The announcement comes after repeated attempts to allay concerns about the search for a leader to succeed founder and chairman Shigenobu Nagamori.
At a press conference on Friday, Nagamori said Kobe will only serve temporarily, as the company will have five vice presidents in April next year and appoint one of them to the presidency in April 2024.
“As for why it took so long for my successor, I take on the full duty,” Nagamori said. “In retrospect, I had the false impression of finding a better successor outside the company than inside. “
Nagamori, 78, recruited Seki, a former Nissan Motor Co executive, in 2020 to help Nidec, a major player in next-generation automotive components.
Seki became CEO in June 2021, but was demoted less than a year later, and Nagamori expressed dissatisfaction with the company’s business functionality and falling percentage price.
Nidec’s automotive products unit, which it led through Seki, posted an operating loss in the first quarter of this year, impacted by COVID-19 lockdowns, global microchip shortages, as well as restructuring expenses and major progression costs. However, Nidec’s overall operating profit remained necessarily strong for the quarter.
On Friday, Nagamori said he was “surprised” by the poor functionality of the Seki-led unit, adding that the company will not call other people outside the company to immediately take on the lead role in the future.
He also reiterated his statements of a call for effects in July that sought to hand over the reins in two years and denied the hypothesis that he intended to remain in office for the long term.
Kobe, 73, has painted at Nidec since its inception in 1973. Nagamori said he has “absolute confidence” in Kobe, whom he has known for 55 years, and will paint in combination with the company’s performance.
Nidec shares have fallen 33% this year.
(Reporting through Satoshi Sugiyama; Editing through Edwina Gibbs and Kim Coghill)