Japanese carmakers saw their stocks plummet after authorities discovered that falsified testing data had been offered to approve some models.
Japanese Auto Shares Buckle After Falsified Testing Data Scandal
During the first week of June 2024, Toyota Motor Corporation (TM) shares dropped by more than 5.4%, constituting a loss of $15.62bn in market value. They started to recover on Monday 10 June 2024, and at 10:30 EDT, the auto manufacturer’s shares were up 1%.
Mazda Motor Corporation (7261.T), Japan’s second-largest carmaker, lost 7.7% over the same time and its market cap decreased by roughly $511.8m. Similarly, Honda Motor Co., Ltd. (HMC) experienced a stock drop of 5.75%, Yamaha Motor Co., Ltd (YAMHF) 2.2%, and Suzuki Motor Corporation (7269.T) 0.3%. All of these companies have recovered some ground since the opening bell on Monday 10 June 2024.
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Japan’s Ministry of Land, Infrastructure, Transport and Tourism found anomalies and unauthentic test data in the certification applications of Toyota, Mazda, Honda, Yamaha and Suzuki. According to CNBC, Toyota and Mazda “falsified the vehicles used in crash tests”. As with Toyota, the shares of Honda, Mazda, Suzuki and Yamaha traded slightly higher on Monday 10 June 2024.
After the Ministry published its findings at the beginning of June 2024, Toyota said that it would cease distribution of the models in question, which included the Corolla Fielder, Corolla Axio and Yaris Cross. CNBC said that the company’s chairperson, Akio Toyoda, had issued a formal apology, acknowledging that seven of its models were “tested using methods that differ from the standard defined by the national authorities”
