ASIATODAY.ID, JAKARTA – Shares of Japanese car manufacturer Toyota fell as a result of the company falsifying vehicle safety tests. Apart from shares, Toyota’s market capitalization also decreased.
This prompted the Japanese government, through the Ministry of Transportation, to investigate Toyota’s head office.
Toyota lost 2.45 trillion Japanese yen or US$15.62 billion in market capitalization last week. Then, Toyota shares fell 5.4% last week.
Apart from Toyota, Mazda which is also being investigated for a similar case, also experienced a bigger share decline, namely 11% since May 31. Mazda shares last week fell 7.5% and lost market capitalization of 80.33 billion Japanese yen or US$ 511.8 million.
The Japanese Ministry of Transport conducted an extensive investigation into vehicle manufacturers, finding irregularities in safety tests at Honda, Suzuki and Yamaha brands.
Last week Honda shares fell 5.57%, Yamaha fell 2.2%, and Suzuki fell slightly 0.3%.
However, all shares of these automotive manufacturers traded higher on Monday, June 10 2024. Toyota rose 1.7%, Honda rose 2.13% and Mazda rose 1.7%. Suzuki and Yamaha are also slightly higher.
All five companies had submitted incorrect test data, or in the case of Toyota and Mazda, falsified the vehicles used in crash tests.
In response to the investigation, Toyota decided to temporarily stop sales of three models, namely the Corolla Fielder, Corolla Axio and Yaris Cross. The three models are known to be produced in Japan.
Meanwhile, Mazda has suspended deliveries of the RF Roadster and Mazda 2 starting May 30. However, both companies said that customers can still continue to drive their cars. (CNBC International)
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