Business / Corporate

Japanese electric motor maker Nidec names new president, Nagamori to stay as CEO and board chairman

Kyodo

Nidec Corp. said Wednesday that Chairman Shigenobu Nagamori will remain CEO of the major electric motor maker but that he has given up his concurrent post of president.

Executive Vice President Hiroyuki Yoshimoto, 50, has replaced Nagamori as president, in the Kyoto-based manufacturer’s first change of president since its founding in 1973.

“It will take at least 10 years to transfer power,” Nagamori, age 73, told a general shareholders’ meeting in Kyoto. At a news conference, the Nidec founder vowed to remain as CEO until the company achieves its group sales target of ¥10 trillion ($90 billion) by fiscal 2030, a seven-fold increase from the ¥1.49 trillion logged in the past year through March.

“Only the name of the post will change,” Nagamori said of his new title after ceding the president’s post to Yoshimoto. “The new president will support me (for the time being) and I will support him when he becomes fully qualified.”

Yoshimoto indicated he will focus on steering the company as a team, in a departure from its management until now under founder Nagamori.

Yoshimoto previously worked at Nissan Motor Co. before joining Nidec in 2015. Although with Nidec for only three years, Yoshimoto has been praised for improving the profitability of its auto parts sector.

Nagamori is credited with leading Nidec since its foundation as it grew to become a major company with annual sales exceeding ¥1 trillion.

Nidec’s growth has been fueled in part by Nagamori’s ambitious mergers and acquisition strategy, with the company announcing in April the acquisition of Embraco, the refrigeration compressor business of U.S. giant Whirlpool Corp., being the latest example.