Toyota's Market Value Plummets to Over $15 Billion After Falsified Safety Test Scandal

By Trisha Andrada

Jun 10, 2024 04:19 AM EDT

Toyota's stock price plummeted by more than $15 billion last week after the company was found to have falsified safety test results. 

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A Toyota logo is seen on a Prius hybrid offered for sale at a dealership on February 06, 2024 in Chicago, Illinois. (Photo : Scott Olson/Getty Images)

Shares of Japanese Carmaker Toyota Decline After Scandal

Toyota, the biggest automaker in Japan, saw a 5.4% drop in share price last week after the safety test scandal broke on June 3.

According to  CNBC, the value of the carmaker's stock reportedly dropped 2.45 trillion Japanese yen ($15.62 billion) in only one week. However, on Monday, June 10, it had recovered.

According to Japan's Ministry of Land, Infrastructure, Transport, and Tourism, Toyota was one of numerous carmakers whose safety certificates for various models were falsified.

Mazda, the second-largest carmaker in the country, saw its share price drop 7.7% and market value loss of 80.33 billion yen, or $511.8 million, last week.

Honda, Suzuki, and Yamaha were among the other manufacturers whose certification applications were discovered to include anomalies during the comprehensive examination conducted by government officials.

Honda, Yamaha, and Suzuki stocks all dropped last week, with Honda down 5.75%, Yamaha 2.2%, and Suzuki 0.3%. On Monday trading, the shares of each firm increased: Honda rose 2.13%, Mazda 1.7%, and Toyota 1.7%.

Each of the five firms had either provided fabricated test results or, in the instance of Toyota and Mazda, had falsified the vehicles utilized in crash tests.

Read Also: Toyota and Mazda Halt Shipments Amid Safety Test Data Scandal

Toyota Suspends Sales, Shipments

On June 3, Toyota said it would temporarily suspend sales and shipments of its three models currently produced in Japan: the Yaris Cross, Corolla Fielder, and Corolla Axio.

Toyota Chairman Akio Toyoda apologized to the company's stakeholders and consumers after admitting that seven models were tested using procedures different from the government's standards. However, he assured customers they can still drive their cars as usual.

Read More: Toyota Announces Recall of Over 100,000 US Cars Due to Engine Stalling Issue

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