Last week, Japanese automakers faced a significant decline in their market value after the country’s transport ministry uncovered the use of false data to certify certain models. Toyota, the largest automaker in Japan, saw its shares plummet by more than 5.4%, resulting in a loss of 2.45 trillion Japanese yen (.62 billion) in market value following the scandal. However, on Monday, Toyota’s shares showed signs of recovery with a 1.7% increase.
Mazda, Japan’s second-largest automaker, also experienced a 7.7% decline in share value during the same period, losing 80.33 billion yen (1.8 million) in market capitalization. Like Toyota, Mazda’s shares also saw a 1.7% increase on Monday.
The investigation by the Ministry of Land, Infrastructure, Transport and Tourism revealed irregularities in certification applications from other automakers such as Honda, Suzuki, and Yamaha Motor. Honda’s stock fell by 5.75% last week, while Yamaha Motor lost 2.2% and Suzuki Motor edged down 0.3%. However, on Monday, shares of these companies were trading higher, with Honda up 2.13%, Suzuki marginally higher, and Yamaha showing slight gains.
The investigation disclosed that all five companies had submitted false test data. Toyota and Mazda were found to have falsified the vehicles used in crash tests. In response to the findings, Toyota announced that it would temporarily halt shipments and sales of three models currently manufactured in Japan: the Corolla Fielder, Corolla Axio, and Yaris Cross. Chairman Akio Toyoda issued an apology to customers and stakeholders, acknowledging that seven of its models were “tested using methods that differ from the standards defined by the national authorities.”
Similarly, Mazda announced the suspension of the Roadster RF and Mazda 2 models from May 30. Both companies reassured customers that they could continue to drive their cars despite the suspension of new shipments and sales. With the stock market responding to these events, the industry and shareholders will be closely monitoring the actions and responses of these automakers in the coming days.
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