Toyota Shares Drop for the Sixth Day

This year does not seem to be one of Toyota’s best, as the Japanese manufacturer becomes more and more controversial by the day. Impressive recall numbers come up every 24 hours and it seems like every car they sold for the past few years has some kind of a flaw. Unfortunately, actions always have consequences. And Toyota’s actions have serious financial consequences.

Toyota Motors shares have plunged for the sixth day as a result of recall of million of automobiles. The recalls are necessary because of the faulty accelerator pedal which gets stuck in the car’s floor mats and the car keeps accelerating.

The Japanese manufacturer’s shares were down 2.1% to 3,485 yen in the morning trade in Tokyo and ended the day down 1.97%. Things are even worse for the shareholders, as they have lost 15% in the last five days.

"Toyota's stock might fall further until the impact on earnings and profits from the recall becomes clear,"
Hiroaki Kuramochi, chief equity marketing officer at Tokai Tokyo Securities, told the news agency.

Things are as serious as they could get, as US investigators are now looking for e-mails and other documents from Toyota. The recall is not the automaker’s single problem, as US safety regulators forced the Japanese car manufacturer to stop sales and production of some North American models. Investigators haven’t dealt with such a serious case since the defective Firestone tires linked to deadly Ford Explorer SUV rollovers in 2001.

Toyota announced that the recall will extend to Europe and China.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram

Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories