Scandal Eﬀect - Toyota-Led Commercial Vehicle Partnership Expels Hino Motors - Toyota Motor (NYSE:TM)

Commercial Japan Partnership Technologies Corporation (CJPT), of which Toyota Motor Corp TM is a part, has decided to expel Hino Motors Ltd, citing misconduct concerning certification testing.
An investigation conducted by the government found that Hino has hidden emissions data pertaining to a light-duty engine, N04C (HC-SCR) (2019 model).
Toyota President Akio Toyoda opined that the misconduct committed by Hino is incompatible with CJPT's aspirations and goals.
Related: Toyota's Hino Motors Suspends Light Truck Shipments After Emissions Data Scandal
The consortium believes Hino's continuation will not gain the understanding of its customers and the public.
Hino will be excluded from all agreements, including the joint planning agreement, and Hino's equity stake (10%) in CJPT will be transferred to Toyota.
Akio Toyoda, President of Toyota, said, "As the parent company and a shareholder of Hino, we are extremely disappointed with the company's misconduct in relation to the certification testing, which has greatly undermined the trust of our customers and all other stakeholders."
Price Action: TM shares closed lower by 0.54% at $153.48 on Tuesday.
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