Toyota Motor Corp. (NYSE:TM) has discrepancies in its vehicle certifications that also conflict with United Nations standards, a key set of regulations followed by 62 countries and regions, including the European Union.
The implications of these findings could potentially extend beyond Japan, affecting Toyota’s operations globally, as regulators in other jurisdictions may consider taking similar action against the automaker, it said. Bloomberg.
Earlier this month, Japan’s Ministry of Transport took drastic action by suspending sales and deliveries of six models, three of which are from Toyotaincluding the Corolla Fielder, Corolla Axio and Yaris Cross.
The action followed an internal investigation that discovered falsified safety data during pedestrian safety tests and the use of non-standard vehicles in crash tests for several other models.
Akio ToyodaPresident of Toyota responded to the crisis by stating that the tests were carried out under more stringent conditions than those required by Japanese regulations, ensuring that the vehicles are safe to drive.
Read too: Toyota, Subaru and Mazda aim for a carbon-neutral future in engine development: details
However, he admitted significant lapses in the certification process and apologized for the oversight.
“We neglected the certification process and mass-produced our cars without taking necessary precautionary measures,” Toyoda noted during a press conference on June 3.
Toyota, which is the world’s largest car manufacturer by volume, announced that this issue would affect two of its production lines, which collectively produce around 130,000 vehicles annually.
This comes at a critical time as the company prepares for its annual shareholder meeting next week. As of 2023, Toyota has manufactured and sold more than 11 million passenger vehicles worldwide.
Toyota shares are up 36% over the past 12 months. Investors can gain exposure to stocks through Amplify CWP International Enhanced Dividend Income ETF (NYSE:IDVO) and Altrius Global Dividend ETF (NASDQ:DIVD).
Price Action: TM shares closed up 0.80% at $208.02 on Monday.
Disclaimer: This content was produced in part with the help of AI tools and was reviewed and published by Benzinga editors.
Read next: Japanese megabanks plan to sell stake in Toyota for $8.5 billion: report
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