Disgruntled Toyota shareholders demand vote against chairman Toyoda amidst testing scandal

Toyota's chairman Akio Toyoda is facing disgruntled shareholders as two major proxy groups demand a vote against keeping him on the board. The vote, expected at the June 18 annual shareholders meeting, follows Toyota's recent apology over fraudulent certification tests for vehicles. While the company prides itself on quality, it faced embarrassment over these issues. Japanese automakers, including Toyota, have been dealing with problems, but no safety concerns or recalls were reported. However, Toyota suspended production of three models made by group companies in Japan. Shareholders are questioning the company's corporate culture, with some holding Toyoda accountable. Proxy advisory firms like ISS and Glass Lewis & Co. are recommending voting against Toyoda's reappointment and other executives, citing the need for more transparency, especially regarding lobbying on climate change. Despite these challenges, Toyota remains a leading automaker globally, with significant sales figures. The company's stock prices have fluctuated amid recent troubles, but its long-term performance has been strong. The shareholders, mainly Japanese companies, have significant influence, but some are starting to voice concerns. Overall, the situation highlights the importance of accountability and transparency in corporate governance.