Stock News: Toyota Motor Corp (TYO:7203)

After trading down in the low 3000s during February, Toyota Motor Corp (TYO:7203) investors must have thought that the bad news was over. In the last week, however, the stock price of Toyota Motor Corp (TYO:7203) dropped away after what looked like a mini recovery, and now there is more bad news which may affect the stock price even further.

Toyota Motor Corp (TYO:7203)

There are two issues which have hit the Toyota Motor Corp (TYO:7203) stock in the last week. The first is the proposed huge fine levied by the US market regulators of $16.4m – the maximum penalty allowed under current US laws. Although Toyota do have the right to appeal the penalty, it is unknown whether they will at this time. Toyota Motor Corp (TYO:7203) also face the possibility of more fines if the regulators find additional violations.

A second piece of news coming out of South Korea is that Toyota may be forced to recall as many as 13,000 vehicles, as dangerous floor mats may hamper the operation of the accelerator. Even though owners can receive free repairs to their cars, it does nothing but damage the already under-fire reputation of Toyota as they try to salvage their global brand.

We will see if these stories continue to affect the Toyota Motor Corp (TYO:7203) stock price this week.