Japanese transportation ministry officials reportedly conducted an on-site investigation at the headquarters of Toyota Motor Corporation (NYSE:TM) following the discovery of irregularities in its applications to certify specific vehicle models.

The broadening repercussions of the certification test issues originated from a safety test scandal involving Toyota’s Daihatsu compact car unit, reported Reuters.

This situation has also affected other Japanese automakers, as the ministry has mandated comprehensive examinations of certification procedures across the industry.

According to the report, Toyota, Mazda Motor Corp.(OTC:MZDAY), Honda Motor Company, Ltd. (NYSE:HMC), Suzuki Motor Co. (OTC:SZKMY), and Yamaha Motor Co., Ltd. (OTC:YMHAY) acknowledged that they had provided either inaccurate or altered data during the vehicle certification process.

Also Read: Toyota, Subaru, Mazda Aim For Carbon-Neutral Future In Engine Development: Details

As per the ministry official, Toyota was the first company to undergo an inspection after being identified on Monday, and the remaining four automakers are also scheduled for inspections, per the report.

The report further cited some analysts who commented that Toyota would be under more pressure to strengthen governance, while others said the impact on sales is likely to be limited given that it is only suspending three model sales and many domestic rivals also fell short of ministry standards.

Yesterday, Toyota announced a temporary halt on shipments and sales of three models in Japan, effective immediately, amid a safety scandal.

Toyota Motor disclosed on Monday in a press release that it is suspending shipments and sales of the Corolla Fielder, Corolla Axio, and Yaris Cross models in Japan.

Toyota stock has gained more than 45% in the last 12 months. Investors can gain exposure to the stock via Avantis International Large Cap Value ETF (NYSE:AVIV) and ActivePassive International Equity ETF (NYSE:APIE).

Also Read: Toyota To Terminate Massive Olympic Sponsorship Deal After Paris Games: Report

Price Action: TM shares are up 0.16% at $212.50 premarket at the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image – Shutterstock

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