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HomebusinessToyota shares slide as unit Daihatsu's safety scandal widens

Toyota shares slide as unit Daihatsu's safety scandal widens

TOKYO : Toyota Motor’s shares fell more than 4 per cent on Thursday after its small-car unit Daihatsu Motor said a day earlier it would halt shipments of all of its vehicles for an indefinite period due to the revelation of more safety-inspection irregularities.

Daihatsu said that an independent committee had found issues involving 64 models, including almost two dozen sold under Toyota’s brand. The panel had been investigating the unlisted carmaker after it said in April that it had rigged side-collision safety tests carried out for 88,000 small cars.

Japan’s transport ministry is considering administrative penalties against Daihatsu including revoking its production certification depending on its own investigation, the Nikkei business daily reported.

Daihatsu said on Wednesday it did not know when it would resume shipments, but that the impact on its earnings would be substantial.

Shares of Suzuki Motor, Daihatsu’s main rival in Japan’s minivehicle market, rose more than 2 per cent, while Tokyo’s benchmark Nikkei average was down 1.3 per cent as of 0040 GMT.

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