Toyo Tire & Rubber Co.'s shares have fallen in price
Despite the decline in the stock price of the tire manufacturer, analysts say that not everything is as bad as it seems. On the one hand, it is impossible to assess the scale of the fiasco, on the other hand, the change in quotations helps to stabilize the company's position.
It is worth noting that the decline in the market price of shares occurred for the first time in 4 years. And there is a clear reason for such a decline in indicators. Simply, some of the technologies used by the enterprise did not pass several certification tests. This was admitted by the company's representatives themselves, so the data was obtained from the first hands.
Information that Toyo Tire products do not meet the declared standards was published on the company's official website on 13.03.15. Moreover, as noted in the press release, the company will begin to withdraw batches of products sent to dealers and sold to private individuals, replacing them with other models.
The investigation into the incident was entrusted to hired professionals, so Toyo Tire hopes that the cause will be established quickly enough. Recall that the previous decline in stock prices was observed after the Japanese earthquake that occurred in March 2011.
It is worth noting that the decline in the market price of shares occurred for the first time in 4 years. And there is a clear reason for such a decline in indicators. Simply, some of the technologies used by the enterprise did not pass several certification tests. This was admitted by the company's representatives themselves, so the data was obtained from the first hands.
Information that Toyo Tire products do not meet the declared standards was published on the company's official website on 13.03.15. Moreover, as noted in the press release, the company will begin to withdraw batches of products sent to dealers and sold to private individuals, replacing them with other models.
The investigation into the incident was entrusted to hired professionals, so Toyo Tire hopes that the cause will be established quickly enough. Recall that the previous decline in stock prices was observed after the Japanese earthquake that occurred in March 2011.