Under the shadow of Toyota's car falsification scandal, Chairman Toyota Akio's approval rating has plummeted significantly

According to the information obtained from the Zhitong Finance and Economics APP, at the annual shareholders' meeting of Toyota Motor Corporation (TM.US) held on Tuesday, although Toyota's Chairman, Akio Toyoda, and his nine board members were successfully re-elected, Toyoda's support rate saw a significant decline due to the company's governance and certification test scandals.

Despite recommendations from two major proxy advisory firms not to re-elect him, Toyoda was still re-elected, but his support rate dropped to 72%, lower than last year's 85% and 96% in 2022.

Proxy advisory firms Institutional Shareholder Services (ISS) and Glass Lewis both questioned the company's handling of the test violations, including compact car manufacturer Daihatsu.

Major foreign investors such as the U.S. public pension fund CalPERS and Canadian pension fund investor CPP Investments opposed Toyoda's re-election.

Analysts point out that the significant drop in support for Akio Toyoda will not only damage his reputation but may also prompt the company to further advance governance reforms, with the acceleration of unwinding cross-shareholdings within the group being one possible reform measure.

In early June, Toyota disclosed violations in six different vehicle certification tests, including three models that were still on sale at the time. Some tests were conducted under conditions stricter than government regulations, rendering the test results invalid. Since the new information was exposed, Toyota's stock price has fallen by 10%, but it has still risen by 18% year-to-date