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.
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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.
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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.