Japanese Motor Companies Trade In Green After Auto Safety Fiasco

After a tumultuous period, the marquee Japanese motor companies appear to be returning to some level of visible stability on the equity markets. The chaos ensued among the major motor companies in Japan, namely Toyota, Nissan, Suzuki and Honda.

These companies were in the eye of the storm when regulatory authorities found foible in the security and safety of their vehicles.

It was at the beginning of June when reports of discrepancies in safety systems of the automobiles emerged. Toyota, the world’s largest automaker, was in focus along with the likes of Mazda, Honda and Nissan.

Shares of Auto Companies Jump

The shares of Toyota listed on the Japanese equity market were trading in the green, with an increase of 0.56 per cent to JPY 17, taking the cumulative numbers to JPY 3,053. Nevertheless, it should be noted that these shares have slumped 4.35 per cent over the past 5 days, an overall drop of 11.34 per cent in just a month.

When it comes to Honda, the company shares also jumped 1.28 per cent or JPY 21, taking the value of individual shares to JPY 1,664. The larger picture is similar for Honda, as in the past month the shares have dipped 6.02 per cent.

In the intraday trade, Nissan also jumped by 1.96 per cent or JPY 10, taking the cumulative value per share to JPY 530. Suzuki also saw its share price rise by 1.20 per cent or JPY 22, taking the individual price to JPY 1,809.

Toyota Shareholders Meeting

At the beginning of June, allegations were raised against Mazda, Suzuki, and Honda for submitting falsified documents about the safety of the cars.

Toyota’s factories were raided by Japanese authorities; in response, the company’s higher management came out in public and issued an apology.

This week is crucial for Toyota, as the Japanese carmaker will be holding a shareholder’s meeting. The meeting will have corporate governance reform and leadership in focus.

According to reports, there is a possibility that the chairman, Akio Toyoda, may not be re-elected to the top job at one of the biggest companies in Japan.

Published on: Tuesday, June 18, 2024, 10:23 AM IST