U.S. Regulators Find No Electronic Flaws in Toyota’s Runaway Cars ; Shares Push to HoD

Shares of Toyota Motor Corp. (TM) are currently up 4.43% at $88.90 per share during Tuesday afternoon trading. Strength being attributed to a Bloomberg News article that says Toyota review by NASA and the National Highway Traffic Safety Administration found no electronic flaws in runaway cars.

From Bloomberg:

“Unintended acceleration in Toyota Motor Corp. vehicles was rooted in mechanical flaws rather than electronic defects, a U.S. investigation found.

NASA, the U.S. space agency, and the National Highway Traffic Safety Administration today said a 10-month probe of defects that led to recalls of more than 8 million vehicles worldwide found no electronic causes. Safety advocates and some lawmakers had pointed to electrical faults as a reason for the reports about the world’s largest automaker.

“Our conclusion, that Toyota’s problems were mechanical, not electrical, comes after one of the most exhaustive, thorough and intensive research efforts ever undertaken,” U.S. Transportation Secretary Ray LaHood said in prepared remarks.”

Shares of Toyota are seeing huge volume; mid-way through the session the ticker has already traded 2 million shares, which is 4x the 3-month daily average volume.

TM currently trades at a trailing P/E of 20.62, a forward multiple of 21.32 and a P/E to Growth ratio of 0.64.

Toyota Motor Corp. was founded in 1933 and is headquartered in Toyota City, Japan.

About Ron Haruni 1150 Articles
Ron Haruni

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