Toyota Unit Agrees to $1.6 Billion Settlement Over Emissions Scandal
Toyota’s subsidiary Hino Motors has agreed to pay $1.6 billion (£1.3 billion) and plead guilty to deceiving U.S. regulators about the emissions levels of its diesel engines. The truck manufacturer will also face a five-year ban on exporting diesel engines to the U.S. This settlement follows charges filed against Hino for fraud in a Detroit court, after it sold 105,000 illegal engines in the U.S. between 2010 and 2022.
The settlement is subject to approval by a U.S. court. According to the U.S. Justice Department, Hino submitted “false and fraudulent” emission testing and fuel consumption data as part of a “criminal conspiracy” that enabled it to import and sell its engines in the U.S.
FBI Director Christopher Wray stated, “Hino Motors engaged in a years-long scheme to alter and fabricate emissions data in order to gain a competitive advantage and boost profits. In doing so, Hino violated laws and regulations designed to protect public health and the environment.”
In addition to the import ban, Hino will implement a compliance and ethics program during the five-year period. Hino’s CEO, Satoshi Ogiso, stated, “We take this resolution seriously and will ensure the implementation of corrective measures, including the Environmental Mitigation Program, and strengthen our compliance system. We sincerely apologize for the inconvenience caused to our customers and stakeholders.”
The U.S. Environmental Protection Agency (EPA) confirmed that Hino has agreed to recall certain affected heavy-duty trucks and replace marine and locomotive engines to mitigate excess air emissions.
To address the financial impact of the scandal, Hino reported an extraordinary loss of 230 billion yen (£1.2 billion, $1.48 billion) in its second-quarter financial results in October.
This scandal follows the broader “dieselgate” controversy in which several car manufacturers, including those in the Volkswagen Group, were found to have cheated on emissions tests. Volkswagen alone has spent over 30 billion euros (£25 billion, $30.9 billion) on fines, recalls, and customer compensation.
About The Author
