Toyota share price down, accepts resignation of top female executive after arrest

Toyota Motor Corp announced on Wednesday it has accepted the resignation of Julie Hamp, its first female managing officer, following her arrest in Japan two weeks ago on suspicion of illegally importing a prescription drug from the US.

Ms. Hamp, who in April was appointed as chief communications officer as part of Toyotas push to diversify its male and mostly Japanese-dominated executive team, was arrested after Japanese customs officers intercepted a US package addressed to her that contained about 60 tablets of the Oxycodone painkiller. Although the drug is legal with a prescription in both the US and Japan, bringing it to the Asian country requires a special approval and it must be carried by the patient.

Ms. Hamp hasnt been charged with any crime yet and prosecutors must decide whether to indict her by July 8th, when her detention period ends. She has denied all allegations, saying that she did not think she had brought in an illegal substance.

Following Hamps arrest, President Akio Toyoda called a press conference to express confidence that she hadnt intentionally broken Japanese law and apologize for the arrest, while also vowing to stand by her side.

Toyota said that Ms. Hamp had notified the company on Tuesday of her intentions to resign and added that it had accepted her resignation after considering the “concerns and inconvenience that recent events have caused our stakeholders”.

The company had pointed to Ms. Hamps appointment as evidence that it was working on diversifying its executive line-up, but the arrest, which sent ripples across the company and Japanese media, came as a step backwards for Toyotas push to become a “truly global” company.

The carmaker said in a statement on Wednesday that it intends to “learn from this incident to help ensure a secure working environment for everyone at Toyota around the world”, adding that it remained firmly committed to putting the right people in the right places “regardless of nationality, gender, age and other factors”.

Toyota Motor Corp settled 0.77% lower on Wednesday in Tokyo at ¥8 140 per share, marking a year-on-year increase of 31.95%. The automaker is valued at ¥28.04 trillion. According to the Financial Times, the 25 analysts offering 12-month price targets for Toyota Motor Corp have a median target of ¥9 500, with a high estimate of ¥10 500 and a low estimate of ¥7 800. The median estimate represents a 15.8% increase from the previous close of ¥8 203.