One of Japan's marquee companies, Toyota, is no stranger to controversies, but the most recent development surrounding the company appears to be growing in severity. Toyota's units have been raided by the Japanese Transport Authority over concerns involving their safety systems.
Japanese Motors Cos in Trouble
Toyota, along with other Japanese automobile majors, including Mazda, Suzuki and Honda, have been accused of furnishing falsified documents on incorrect or manipulated information regarding the safety of the cars.
Barely a few weeks after making headlines with its brand new line of combustion engines, Toyota, in what can be understood as an admission of guilt, has come out with an apology for submitting a manipulated set of data.
The company has, in addition, suspended production of some of its popular models, including the sedan cars of the Corolla Fielder, Corolla Axio and SUV Yaris Cross.
The company has, in addition, suspended production of some of its popular models, including the sedan cars of the Corolla Fielder, Corolla Axio and SUV Yaris Cross. | CarDekho.com
This is not the first time that Toyota has found itself being accused of submitting inaccurate information regarding its cars. In fact, in 2023, Daihatsu Motor Co., Ltd, an Osaka-based car company owned by Toyota, was accused of the same, and had to shut down its factories.
Recently, another Japanese giant, Nissan, was also caught in regulatory scrutiny. The US Automobile Safety and regulatory authority recently started a probe into 75,000 Nissan cars. Here, again, safety was allegedly compromised by the company in question.
Nissan's Faulty Airbags
Nissan's faulty Takata airbags are under the scrutiny of authorities. The regulatory body has asked as many as 84,000 owners of cars fixed with these faulty airbags to cease their usage due to the safety threat that these airbags pose.
In what can be seen as a response to these new developments, Toyota shares, that are listed on the Japanese stock markets plunged significantly. Toyota shares drooped by 2.43 per cent to reach JPY 3,218. | pixabay
This safety scandal, in many ways, is reminiscent of the Volkswagen pollution scandal, when the German car company installed some illicit software to disseminate distorted information regarding the emissions of its cars in 2015.
In what can be seen as a response to these new developments, Toyota shares, which are listed on the Japanese stock markets, plunged significantly. Toyota shares drooped by 2.43 per cent to reach JPY 3,218.
The story was no different for others involved, as Mazda shares dropped a massive 3.09 per cent. Honda shares also dropped 3.36 per cent. Nissan also declined by 3 per cent. Suzuki however was the outlier here, as the share of the company picked up 0.13 per cent.
