(Oct 13): Shares of scandal-hit Nidec Corp fell 6.6% on Tuesday to their lowest level since July 2016 amid concerns about the risk of delisting.

The Japanese motor maker has tumbled more than 34% since its recent peak on Sept 18, with the selloff accelerating after it announced a massive impairment charge that would wipe out practically all the profit the company had made over the past decade.

Nidec faces possible delisting if the Tokyo Stock Exchange determines it has failed to adequately overhaul its internal controls, following an accounting scandal that prompted the exchange to place the company under special scrutiny in October 2025. Nidec aims to submit a report by Oct 28 demonstrating that it has strengthened those controls.

Nidec shares had rebounded as much as 50% from their late-October 2025 low on hopes that heightened scrutiny would spur improvements in governance. Those gains now have been almost completely wiped out after its auditor declined to express an opinion on its financial statements in late September.

“The stock is not in a position where investors can aggressively buy,” said Naoki Fujiwara, a senior fund manager at Shinkin Asset Management Co. The impact of the auditor’s disclaimer of opinion remains unclear, and that uncertainty is weighing on the shares, he said.

Oasis Management Co, which holds a stake of about 8% in Nidec, has urged the company to explore going private, including by seeking preliminary bids from potential buyers. Pessimism is also growing among analysts, with UBS downgrading the shares to neutral and cutting its price target.

For fund managers, it is difficult to justify holding the shares as long as the risk of delisting cannot be ruled out, said Ikuo Mitsui, a fund manager at Aizawa Securities. A broad overhaul of governance will take time, while the lack of visibility over the company’s outlook remains a concern, he added. 

Uploaded by Chng Shear Lane