From Investing.com: 2024-06-04 01:10:54

Japanese transport ministry officials are investigating Toyota Motor’s headquarters for irregularities in certifying vehicle models, following a safety test scandal at Daihatsu. Other automakers under inspection include Mazda, Honda, Suzuki, and Yamaha. The impact on sales is expected to be limited, with Toyota suspending sales of three models while upholding regulations.

Toyota Chairman Akio Toyoda may face more pressure after Toyota and Mazda suspended sales of models due to flawed certification applications. Examples of wrongdoing included improper collision damage measurements and conducting tests outside of government requirements. This scandal could disrupt production in Japan’s automotive supply chain, affecting the economy’s growth this quarter.

Shares of Toyota, Honda, and Mazda have dropped almost 3% since Friday, with Yamaha down 1.3% and Suzuki remaining flat. The impact may extend beyond production stoppages at Toyota group companies, potentially affecting subcontractors and smaller companies. This could lead to consumer hesitation in purchasing cars, impacting Japan’s economic performance.



Read more at Investing.com: Japanese authorities inspect Toyota HQ over certification irregularities By Reuters