President and the chief operating officer Jun Seki will leave Nidec.
As far as we know, Vice Chairman Hiroshi Kobe will take over the position from Saturday.
The announcement arrives after repeated tries to quell worries over a new leader to follow founder, Chairman Shigenobu Nagamori.
At a Friday news meeting, Nagamori voiced that Kobe will only serve temporarily, as the company will select five vice presidents in April next year and one of them to be the president in April 2024.
Nagamori, 78, recruited Seki, an ex-Nissan (OTC: NSANY) Motor Co executive, in 2020. He was to assist Nidec in evolving into a major component player for next-generation automobiles.
Seki came to the CEO position in June 2021. However, was downgraded less than a year later. Nagamori expressed displeasure with the company’s business execution and a drop in its stock price.
This year, Nidec’s automotive products unit, which Seki conducted, conveyed a first-quarter operating failure, pierced by coronavirus lockdowns, a global micro-chip deficiency, high restructuring costs, and development expenses. Nevertheless, Nidec’s general operating income was flat for the quarter.
Poor Performance Review
Nagamori was surprised by the inadequate performance of the unit led under Seki, counting that the company would not get in people from outside the company to immediately take over the top role in the future.
He repeated that he desired to pass over the reins in two years. He denied speculation that he intends to stay long-term.
Kobe, 73, has been with Nidec since its establishment in 1973. Nagamori expressed he has an indisputable trust in Kobe, whom he has known for 55 years. Moreover, he added that they will operate together to enhance the company’s performance.
Nidec’s shares have declined 33% so far this year.