TNI || New Delhi || 8th March 2022
The opening of March 7th saw shares of Toyota’s truck-making subsidiary Hino fall 16.8% in the first trading period since the firm admitted to manipulating emissions data, the worst one-day drop in more than two decades.
Hino admitted on Friday that it cheated on diesel engine efficiency and fuel economy statistics in some of its Japanese-made vehicles.
The transport ministry inspected the company’s headquarters in Tokyo on Monday and announced that an investigation would be launched. As of February, the organisation said it had halted new sales of the engine and vehicles that transport them in Japan, after selling well over 115,000 commercial vehicles using forged data.
The newest scandal to strike the country’s auto industry is Hino’s data tampering.
Mitsubishi Motors admitted to using advantageous fuel economy data in 2016, and Suzuki, Mazda, and Yamaha jumped on the bandwagon two years later. Hino’s admission, according to experts, shone a light on corporate governance flaws among a large percentage of businesses traded on the Tokyo Stock Exchange.
While Toyota nominally owns Hino, it is impossible to enforce regulations on the subsidiary due to the current arrangement.
The news hurt Japanese auto markets, with Toyota shares falling as much as 7.5 percent and Nissan shares falling as much as 8.6 percent as a result of the shocker.
Hino’s stock ended the day at $745, down 16.8%. According to business president Satoshi Ogiso, who spoke during a news conference on Friday, Hino deceived on the tests due to the stress of achieving smart objectives and adhering to schedules.
Hino cheated by replacing the purifying gear during the emission evaluation test.
During a company investigation into pre-shipment checks for units sold in Japan, data manipulation was discovered.Hino’s recent dilemma, according to Seiji Sugiura, a senior analyst at consultancy firm Tokai Tokyo Research Institute, is partly due to the company’s position inside the Toyota group.
Hino is traded and controlled independently from Toyota’s commercial vehicle division.
Even though Hino is part of the Toyota group, it seems to be overlooked. It’s been unclear how Toyota runs Hino and controls its governance. Sugiura added.
On Friday, Toyota announced that about 3,000 Toyota vehicles were equipped with the Hino engines that are the subject of the inquiry.
Hino will verify the correct specifications, and Toyota will take appropriate action in consultation with Hino.