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Following shocking allegations from earlier this year, a new report from Japan’s Ministry of Land, Infrastructure, Transport and Tourism found that Toyota falsified data to certify certain vehicles, causing the automaker’s shares to plummet by $15 billion in a week.
Toyota’s stock price fell an estimated 5.3% following the June 3 announcement, posting a loss of 2.45 trillion yen, or just over $15 billion.
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Following the inspection and subsequent report, Toyota immediately halted shipments of three models – the Corolla Fielder, Corolla Axio and Yaris Cross – and halted production of four other models after it was discovered that data had been inaccurate.
The falsified tests reportedly took place in 2014, 2015 and 2020.
“As the person in charge of the Toyota Group, [apologize] Toyota Chairman Akio Toyoda, grandson of the company’s founder, said: Press conference last week.
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Still, the automaker’s market capitalization is about $280 billion.
The scandal broke in January 2024 when a Japanese government official Toyota factory raid This comes after Toyota executives admitted that the company had falsified the results of certain engine tests.
Meanwhile, the company strong Sales for fiscal year 2024 (starting in April 2023 and ending in March 2024) are expected to be 45.953 trillion yen, an increase of 21.4% from fiscal year 2023.
The results of the investigation are expected to have a negative impact on the company’s future earnings. Toyota is expected The first quarter of fiscal 2025 report is expected in August.