Toyota Loses Over $15 Billion in Market Value After Investigation
Following bombshell allegations earlier this year, a new report by the Transportation Ministry of Japan found that Toyota falsified data to certify select vehicles. The news caused the carmaker's stock valuation to plummet by $15 billion in one week.
Toyota dipped an estimated 5.3% following the June 3 report, resulting in a loss of 2.45 trillion Japanese yen, equivalent to just over $15 billion.
Related: Toyota Airbag Recall 2023: See Which Models Are Affected
The inspection and subsequent report led Toyota to immediately halt shipments of three vehicles (Corolla Fielder, Corolla Axio, and Yaris Cross). Four other models have been discontinued since the data was found to be incorrect.
The falsified tests were reportedly conducted in 2014, 2015, and 2020.
"As the person in charge of the Toyota Group, I would like to sincerely [apologize] to our customers, to car fans, and all stakeholders for this," said Akio Toyoda, Toyota chairman and grandson of the company's founder, at a press conference last week.
Still, the carmaker's market cap is around $280 billion.
The scandal began in January 2024 after Japanese officials raided a Toyota factory following an admission from Toyota executives that the company had falsified the results of certain engine testing.
Meanwhile, the company reported a strong FY 2024 (which began in April 2023 and ended in March 2024) with a sales revenue of 45,095.3 billion yen, a 21.4% increase from FY 2023.
The results of the investigation are expected to harm the company's future earnings. Toyota is expected to report Q1 FY 2025 in August.
- https://www.msn.com/en-us/money/companies/toyota-loses-over-15-billion-in-market-value-after-investigation/ar-BB1nYqg8
Related
Here's how much it can cost a family of four to live across 10 major Asian cities
Here's approximately how much a family of four will pay for cost of living in these 10 major Asian cities.
MoneyWhat Kamala Harris' latest financial disclosure reveals about her investment portfolio
Financial experts sum up Vice President Kamala Harris' latest financial disclosure of her personal assets in one word: Boring. But that's not a bad thing.
MoneyHarvard psychologist: If you use any of these 7 phrases every day, you 'may have low emotional intelligence'
Harvard psychologist and "Letting Go of Your Ex" author Dr. Cortney Warren reveals the toxic phrases that make you sound like you have low emotional intelligence, and what to say instead.
Money2 Unexpected Expenses I’ve Been Slammed With in Retirement
According to the Bureau of Labor Statistics (BLS), the retirement-aged person (65 and up) spends $52,141 a year, or around $4,345 monthly. Breaking this down further, those ages 65 to 74 spend $56,435...
MoneyHow 2 friends built a startup that brings in $226 million a year: 'It was a big risk, but it paid off'
Lovevery co-founder Jessica Rolph got the idea for her company after making homemade baby toys for her son. Now, the startup brings in millions annually.
Money39-year-old self-made millionaire: 7 frugal habits I will never give up, no matter how much money I have
Self-made millionaire and entrepreneur Bernadette Joy shares the seven "seemingly silly" but enduring frugal habits that she says helped her build wealth.
MoneyTexas Earthquakes Prompt Oil Regulator to Inspect Disposal Wells
The Texas oil regulator said it’s investigating after several earthquakes hit the Permian Basin this week.
MoneyThousands of Florida preschools expected to close as wave of bankruptcies hits
Thousands of Florida preschools expected to close as wave of bankruptcies hits
Money