In a recent development, Toyota Motor TM has announced that its internal investigation into car model certification applications has not uncovered any further instances of misconduct, beyond those previously reported last month.
What Happened: Toyota has completed a thorough examination of the certification process for all its domestic models over the past decade. This investigation was initiated in response to an industry-wide directive from the Japanese transport ministry, following a safety test scandal at Toyota’s Daihatsu compact car unit, as per their official press note on Friday.
In June, Toyota, along with four other automakers, confessed to submitting flawed or manipulated data during vehicle certification. The Japanese automaker has now reported its findings to Japan’s transport ministry and committed to continue implementing measures in accordance with the ministry’s guidance.
Why It Matters: This certification investigation was triggered by the Daihatsu scandal, which resulted in a record low shareholder support for Toyota’s Chairman Akio Toyoda, dropping to 72% at its annual general meeting. The investigation was initially delayed due to issues related to vehicle emissions and fuel efficiency during certification applications.
Toyota temporarily halted shipments and sales of three models in Japan following the investigation revealing falsified safety data. This was followed by a recall of over 100,000 vehicles in the U.S. due to concerns over engine debris causing them to stall.
The series of scandals had a significant impact on Toyota’s market value, which plunged by over $15 billion.
Price Action: According to Benzinga Pro, Toyota closed at $206.25 on Wednesday.
Photo via Shutterstock
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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