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Toyota shares plummet on the stock market and the automaker loses R$79 billion in market value: Yaris Cross and Corolla fraud scandal destroys credibility of the largest car manufacturer in the world

Written by Flavia Marinho
Published 15/06/2024 às 04:04
toyota - yaris cross - corolla - suv - engine - fraud - toyota cars - toyota shares - stock exchange
Toyota, the largest car manufacturer in the world is also a winner in controversies: the manufacturer announced the suspension of production and sales of the Corolla Fielder, Corolla Axio and Yaris Cross.

Toyota, the largest car manufacturer in the world is also a winner in controversies: the manufacturer announced the suspension of production and sales of the Corolla Fielder, Corolla Axio and Yaris Cross.

Toyota, the world's largest automaker is facing a slipperier path since the end of May. After the revelation that the company used data falsified in tests security, Toyota shares fell more than 5,4%. This controversy has already resulted in a loss of US$15,62 billion for the company (around R$79 billion).

Since January, Japan's Ministry of Land, Infrastructure, Transport and Tourism has been investigating the automaker and found that Toyota modified vehicles used in crash tests. With the publication of the report on forgeries, Toyota announced the suspension of shipments and sales of three models manufactured in Japan: Corolla Fielder, Corolla Axio and Yaris Cross.

Toyota President Akio Toyoda admitted fraud in testing the Yaris Cross and Corolla SUVs

Toyota President Akio Toyoda admitted that seven of the company's models were “tested by methods other than the standards established by national authorities”. Toyoda also apologized to the brand's consumers and investors. “As the head of the Toyota Group, I would like to apologize to our consumers, car fans and all our shareholders for this,” said Toyoda.

The scandal increases pressure for Toyota's all-hands meeting, which takes place later this month. Consultancies Glass Lewis and Institutional Investor Services have recommended that shareholders vote against Toyoda's re-election to the presidency.

On Monday morning (10), the company was trying to recover its losses, with an increase of 0,89% in New York, at 12 pm.

Caught red-handed: Honda, Yamaha Motor, Suzuki Motor and Mazda

Toyota was not the only one involved. The Japanese government report also pointed out irregularities in the certificates of Honda, Yamaha Motor, Suzuki Motor and Mazda.

The first three were found to have false data in vehicle tests, while Mazda, like Toyota, altered the test vehicles. The manufacturer suspended the Roadster RF and Mazda 2 models.

Japan's Ministry of Transport announced that it will carry out on-site inspections at the five companies where the fraud occurred.

In the week following the announcement of the frauds, Honda shares fell 5,75% in New York, while Yamaha Motor fell 2,2%.

On Monday, Honda was looking for recovery, with shares operating up 1,27%, around 12 pm, in New York.

Toyota: the largest car manufacturer in the world is also a winner in controversies

In 2023, Toyota left its competitors behind and became the largest car manufacturer in terms of sales. The company reported 11,2 million vehicles sold last year, surpassing Volkswagen, its main rival, by a margin of 2 million.

Despite leading the market, Toyota has faced a series of complaints. In January, the automaker was involved in a fraud scandal in diesel engine certification tests, aiming to achieve higher power and torque figures.

In December, Daihatsu, a subsidiary of Toyota Industries, also admitted to falsifying safety test results. According to the statement, the branch had been committing fraud for more than 30 years. The investigation found problems in 64 models, which had their shipments suspended.

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Flavia Marinho

Flavia Marinho is a Production Engineer with a postgraduate degree in Electrical and Automation Engineering, with extensive experience in the onshore and offshore shipbuilding industry. In recent years, she has dedicated herself to writing articles for news websites in the areas of industry, oil and gas, energy, shipbuilding, geopolitics, jobs and courses, with more than 7 thousand articles published. Her technical expertise and communication skills make her a respected reference in her field. Contact us to suggest an agenda, advertise job vacancies or advertise on our portal.

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