![Scenery of multiple parking lots](https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1478887401/image_1478887401.jpg?io=getty-c-w750)
bee32/iStock via Getty Images
Five Japanese automakers have been accused of falsifying vehicle safety test data when applying to certify certain models, in a scandal reminiscent of Volkswagen’s 2015 Dieselgate that involved cheating U.S. emissions tests.
The Ministry of Land, Infrastructure, Transport and Tourism last week found that Toyota (NYSE:TM), Honda (NYSE:HMC), Mazda (OTCPK:MZDAY), Suzuki (OTCPK:SZKMY) and Yamaha (OTCPK:YAMHF) were involved in “fraudulent activities” in the certification process of certain models.
The findings dragged the automakers’ Japan-listed shares last week: Mazda -7.7%, Honda -5.8%, Toyota -5.4%, Yamaha -2.2%, Suzuki -0.3%.
The stocks recovered on Monday: Mazda +2.5%, Honda +2.4%, Toyota +1.7%, Suzuki +1.2%, Yamaha +0.5%.
The investigation was conducted after Toyota’s (TM) unit Daihatsu halted all shipments last year due to collision safety testing issues.
The five companies were directed to suspend shipments of the models involved till the transport ministry confirmed their compliance. On-site inspections will also be conducted.
The suspension is not expected to have a major impact on Toyota’s (TM) earnings, as it only applies to three of its models. “The governance problem is a bigger worry,” said SBI Securities’ Koji Endo.
Governance concerns are expected to be in focus at Toyota’s (TM) shareholder meeting next Tuesday. Proxy adviser Glass Lewis recently recommended against re-electing Chairman Akio Toyoda, saying its board is not sufficiently independent.
It is important to note that the 2015 Dieselgate was a much greater scandal, as Volkswagen fitted diesel engines with software that could cheat on U.S. emissions tests. It led to over $30B in fines around the world.