Toyota shares slide on safety scandal at Daihatsu, recall of vehicles By Reuters

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<span>© Reuters. FILE PHOTO: The Toyota logo is seen at its booth during a media day for the Auto Shanghai show in Shanghai, China April 19, 2021. REUTERS/Aly Song/File Photo</span><br />
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<p>By Anton Bridge</p>
<p>TOKYO (Reuters) -Toyota Motor shares slumped on Thursday as Japan&#8217;s transport ministry inspected a subsidiary over safety concerns dating back decades and as the world&#8217;s top-selling automaker separately also announced a recall of 1.1 million vehicles.</p>
<p>Shares in Japan&#8217;s biggest automaker were down 3.8% by the end of morning trading.</p>
<p>A day earlier, <span itemscope="" itemtype="http://schema.org/Corporation"><span itemprop="name"> Toyota </span></span> (NYSE:)&#8217;s small-car unit Daihatsu Motor said it would halt shipments of all of its vehicles for an indefinite period after discovering more safety-inspection irregularities.</p>
<p>Daihatsu said that an independent committee had found issues involving 64 models, including almost two dozen sold under Toyota&#8217;s brand.</p>
<p>The panel had been investigating the unlisted car maker after it said in April that it had rigged side-collision safety tests carried out for 88,000 small cars.</p>
<p>Daihatsu said on Wednesday it did not know when it would resume shipments, but that the impact on its earnings would be substantial.</p>
<p>Daihatsu had nothing to add when contacted by Reuters on Thursday.</p>
<p>Japan&#8217;s transport ministry said it would consider administrative penalties against Daihatsu, including potentially revoking its production certification, depending on the outcome of its investigation.</p>
<p>Chief cabinet secretary Yoshimasa Hayashi told reporters: &#8220;this is an extremely regrettable case that undermines the trust of automobile users and is a misconduct that affects the very foundation of the automobile certification system.&#8221;</p>
<p>Toyota said on Wednesday that it would recall 1.12 million vehicles worldwide due to a fault as a short circuit in a sensor could cause air bags not to deploy as designed. The recall includes 1 million vehicles in the U.S.</p>
<p>Shares in parts supplier Aisin Corp, which manufactured the sensors in the air bags, were down 3.7% in morning trading. Shares of Suzuki Motor, Daihatsu&#8217;s main rival in Japan&#8217;s minivehicle market, rose 2.2%, while Tokyo&#8217;s benchmark average was down 1.5%.</p>
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<br /><a href="https://www.investing.com/news/stock-market-news/toyota-shares-slide-as-unit-daihatsus-safety-scandal-widens-3261234">Source link </a></p><p>The post <a href="https://forextraderhub.com/toyota-shares-slide-on-safety-scandal-at-daihatsu-recall-of-vehicles-by-reuters.html">Toyota shares slide on safety scandal at Daihatsu, recall of vehicles By Reuters</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>