Shares of Toyota, Mazda, Honda and Suzuki fall after safety scandal

Akio Toyoda, chairman of Toyota Motor Corporation, takes a bow during a press conference in Tokyo on June 3, 2024. Toyota said on June 3 it had suspended domestic shipments of three car models after it joined its Japanese rivals Honda, Mazda, in breaking certification rules of the government had violated. Suzuki and Yamaha.

Yuichi Yamazaki | Episode | Getty Images

Shares of Japanese automakers have largely fallen since the country's Ministry of Transport has found false data used to certify certain models a week ago on Monday.

Shares of Japan's largest automaker, Toyota, have fallen more than 5.4% since May 31, the last trading day before the scandal broke on June 3. The automaker has lost 2.45 trillion Japanese yen ($15.62 billion) in market value in the past week alone.

Shares of Mazdathe country's second-largest automaker, has fallen 7.7% since May 31, losing 80.33 billion yen, or $511.8 million, in market capitalization over the same period.

The extensive inspection by the Ministry of Transport also discovered irregularities in certification applications from car manufacturers Honda, Suzuki and Yamaha.

Last week, Honda's shares fell 5.75%, Suzuki engine meanwhile fell by 0.3% Yamaha engine lost 2.2%.

Shares of all those companies traded higher on Monday. Toyota rose 1.7%, Honda gained 2.13% and Mazda rose 1.7%. Suzuki and Yamaha were also marginally higher.

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All five companies had submitted false test data, or, in the case of Toyota and Mazda, falsified the vehicles used in crash tests.

Toyota announced this on June 3following the ministry's investigation report, it will temporarily suspend shipments and sales of three models currently produced in Japan, namely the Corolla Fielder, Corolla Axio and Yaris Cross.

Toyota Chairman Akio Toyoda apologized to the company's customers and stakeholders and acknowledged that seven of its models had been “tested using methods different from the standards set by national authorities.”

Individual, Mazda said it had been suspended the Roadster RF and Mazda 2 from May 30.

However, both companies said customers can still continue driving their cars.

Japan's Ministry of Land, Infrastructure, Transport and Tourism said it will conduct on-site inspections at the five companies where misconduct was reported.

The inspection of Japanese car manufacturers comes next Toyota's Daihatsu unit said in December it would halt shipments of all vehicles, both abroad and in Japan. It came after an investigation into a safety scandal revealed problems with about 64 models, including 22 sold under the Toyota brand.

Daihatsu said yes in April last year Rigorous side impact safety testing has been conducted on 88,000 small carsmost of which were sold under the Toyota brand.

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