By Farah Elias


Toyota Motor shares fell as subsidiary Daihatsu Motor halted vehicle shipments globally after an investigation found more safety-test irregularities, and the automaker recalled about 1 million vehicles in the U.S.

Shares of the automaker dropped as much as 5.6% early Thursday before ending 4.0% lower at 2,537.50 yen.

Daihatsu on Wednesday said it will temporarily suspend all vehicle shipments in Japan and overseas, after an independent committee identified 174 irregularities affecting 64 models, including nearly two dozen sold by Toyota. The panel had been investigating Daihatsu after it confirmed in April that it "committed procedural irregularity" in side-collision safety tests for some vehicles.

Separately, Toyota said Wednesday that it will recall about 1 million Toyota and Lexus vehicles in the U.S., citing potential issues involving airbag-related sensors.

Nomura said the impact on Toyota's earnings from Daihatsu's shipment halt will likely be limited.

The Japanese investment bank said it expects a Y240 billion ($1.67 billion) hit to Toyota sales, assuming Daihatsu stops production for a month, while its operating profit could be dented by Y100 billion-Y150 billion, including compensation to suppliers.

"In the near term, we think that other companies will benefit slightly, particularly in Japan," analyst Masataka Kunugimoto said in a research note.

In Tokyo trading Thursday, shares of Daihatsu rival Suzuki Motor rose 2.1%, outperforming the Nikkei Stock Average, which fell 1.6%.


Write to Farah Elias at farah.elias@wsj.com


(END) Dow Jones Newswires

12-21-23 0226ET