Shares of Japanese automakers have suffered a significant drop after Japan’s Ministry of Transportation discovered the use of false data to certify certain models. This scandal It came out last Monday.
Japan’s largest automaker, Toyota, saw its shares fall more than 5.4% last week after the scandal broke on June 3. The company lost 2.45 trillion Japanese yen ($15.62 billion) in market value in just one week. However, stocks began to recover on Monday.
Mazda, the country’s second largest automaker, also suffered a 7.7% drop in its shares during the same period, losing 80.33 billion yen in market capitalization.
The extensive inspection carried out by the Ministry of Territory, Infrastructure, Transport and Tourism detected irregularities in the certification applications of other automobile manufacturers such as Honda, Suzuki and Yamaha. Honda shares fell 5.75%, Yamaha Motor shares fell 2.2%, and Suzuki Motor shares fell 0.3% last week.
However, all of these companies saw a rebound in their shares on Monday. Toyota rose 1.7%, Honda 2.13%, and Mazda 1.7%. Suzuki and Yamaha also showed slight increases.
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The problem centers on the presentation of false data by the five companies, and in the case of Toyota and Mazda, also on the falsification of vehicles used in crash tests. Following the ministry’s report on June 3, Toyota announced that it would temporarily stop shipments and sales of three models made in Japan: the Corolla Fielder, Corolla Axio and Yaris Cross. Toyota President Akio Toyoda apologized to customers and stakeholders, acknowledging that seven of its models were “tested with methods that differ from standards defined by national authorities.”
For its part, Mazda announced that it had suspended marketing of the Roadster RF and the Mazda 2 since May 30. Both companies stated that, despite the suspension of sales, customers can continue driving their cars.
The Ministry of Transportation announced that it will carry out on-site inspections at the five companies involved in these irregularities. This inspection follows the announcement of Toyota’s Daihatsu unit last December, when shipments of all vehicles were halted following a safety scandal that affected 64 models, 22 of them sold under the Toyota brand. In April last year, Daihatsu admitted to rigging side crash safety tests on 88,000 small cars, most of which were sold under the Toyota brand.
This scandal represents a serious blow to the reputation of Japanese automakers, who now face increased scrutiny and the task of regaining the trust of their consumers and regulators.
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