Toyota’s capitalization fell by $18.5 billion amid data falsification scandal

Analysts from the Nikkei newspaper point out that throughout the week the constant fall in the prices of the automobile giant’s shares on the Tokyo Stock Exchange continued, at the beginning of which the management of the consortium officially confirmed the falsification of stock data. crash tests.

Immediately after the statements, the company recalled several models: Toyota Yaris Cross, Corolla Axio and Corolla Fielder. The next day, June 4, searches were carried out at the automaker’s headquarters.

On Monday, June 3, it was also known that the LC 300, LX 500D, LX 600, sold since September 30, 2021, would be withdrawn from the Russian market due to problems with the gearbox.

The data falsification scandal broke out in March, when the company even suspended its operations. In May, management acknowledged the seriousness of the problem and announced the start of an internal investigation.

The production volume of the retired models at the beginning of the week of the year is about 130 thousand units, which is equivalent to 1% of the total production indicators of the consortium, which in 2023 showed an operating profit of 5 trillion yen (34 .4 dollars). billion).

Furthermore, in the last financial year, global sales of the Japanese automobile giant reached a record in the entire history of the corporation: 10.3 million models.

However, market experts believe that the scandal, which caused shares to fall and market capitalization to drop, may be an indicator of problems in the company’s management.