Hino, Toyota’s truck unit, agrees to $1.6 billion settlement in emissions controversy

A subsidiary of Toyota, Hino Motors, has agreed to pay more than $1.6 billion and plead guilty to charges involving the submission of false engine emission testing data, fraudulent fuel consumption figures, and illegal engine smuggling into the United States. The infractions date back to 2003, highlighting a prolonged pattern of misconduct identified by the company itself in 2022. This incident is part of a larger scandal that has impacted multiple automotive manufacturers.

According to the Justice Department, Hino’s illegal actions allowed it to inappropriately acquire approvals necessary for the import and sale of more than 110,000 diesel engines from 2010 to 2022. These engines were primarily used in Hino’s heavy-duty trucks sold across the nation. Assistant Attorney General Todd Kim emphasized that Hino was fully aware of the standards required for engine certification in the U.S. yet chose to falsify data for years to bypass established regulations. This behavior not only breached environmental and consumer protections but also led to significantly increased air pollution levels.

As part of the legal resolution, Hino Motors Ltd. will plead guilty to participating in a long-term criminal conspiracy. The plea agreement, pending court approval, includes a substantial criminal fine of $521.76 million, along with a five-year probation period during which the company will be barred from importing any of its diesel engines into the United States. Additionally, Hino will implement a thorough compliance and ethics program to enhance accountability.

Included in the plea deal is a forfeiture amount of approximately $1.1 billion. Future payments that Hino is obligated to make concerning civil settlements, including a class action brought by private plaintiffs, will count toward this forfeiture judgment. The resolution involved coordinated efforts from several federal and state agencies, including the Justice Department, Environmental Protection Agency, FBI, and others. These agreements are pending approval in the U.S. District Court for the Eastern District of Michigan.

In addressing the civil claims related to environmental, customs, and fuel economy violations, Hino has agreed to pay an additional civil penalty of $525 million. The company acknowledged that from 2010 to 2019, it submitted fraudulent applications for engine certification, including false carbon dioxide emissions data. Hino’s statement expressed that these agreements clear up all existing legal challenges concerning its historical emissions practices in the U.S.

Hino’s CEO, Satoshi Ogiso, publicly apologized for any inconvenience caused to customers and stakeholders. He assured that the company has taken significant measures to reform its operations, which include vital improvements in internal culture, oversight, and compliance protocols to prevent future offenses.