Shares of Japanese automakers have largely plunged since the country’s transport ministry revealed the use of false data to certify certain models a week ago on Monday. Toyota shares dropped more than 5.4% last week after the scandal broke on June 3, resulting in a loss of 2.45 trillion Japanese yen ($15.62 billion) in market value. On Monday, Toyota’s shares showed signs of recovery, rising by 1.7%.
Mazda, Japan’s second-largest automaker, experienced a 7.7% decline in share value during the same period, losing 80.33 billion yen ($511.8 million) in market capitalization. Mazda’s shares also saw a 1.7% increase on Monday.
The wide-ranging inspection by the Ministry of Land, Infrastructure, Transport and Tourism uncovered irregularities in certification applications from other automakers, including Honda, Suzuki, and Yamaha Motor. Honda’s stock fell 5.75% last week, while Yamaha Motor lost 2.2%, and Suzuki Motor edged down 0.3%. On Monday, shares of these companies were trading higher, with Honda up 2.13%, Suzuki marginally higher, and Yamaha showing slight gains.
The investigation revealed 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 on June 3 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 apologized 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 assured customers that they could continue to drive their cars despite the suspension of new shipments and sales.
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