Toyota’s Hino Motors Reaches $1.6 Billion Diesel Emissions Settlement in the US
Toyota’s truck and engine manufacturing subsidiary, Hino Motors, has agreed to a $1.6 billion settlement with U.S. authorities over fraudulent diesel emissions practices. The agreement includes criminal and civil penalties and resolves allegations of selling more than 105,000 diesel engines in the United States from 2010 to 2022 that failed to meet emissions standards.
The settlement, pending approval by a U.S. District Court judge in Detroit, includes a $521.76 million criminal penalty, $442.5 million in civil fines to federal agencies, and $236.5 million to the state of California.
Hino has admitted to falsifying emissions data, submitting false certification applications, and conducting improper or fabricated tests. The U.S. Department of Justice (DOJ) and Environmental Protection Agency (EPA) reported that Hino will plead guilty to criminal conspiracy and serve a five-year probation, during which it will be prohibited from importing diesel engines it has manufactured into the U.S.
Assistant Attorney General Todd Kim criticized Hino’s actions, stating, “Hino falsified data for years to skirt regulations, resulting in vast amounts of excess air pollution and egregious violations of environmental, consumer protection, and import laws.”
The settlement includes a $155 million mitigation program to replace marine and locomotive engines and a $144.2 million recall program to repair engines in 2017-2019 heavy-duty trucks. Hino’s president, Satoshi Ogiso, expressed regret and highlighted efforts to improve compliance and internal practices, calling the resolution a “significant milestone toward resolving legacy issues.”
The investigation began in 2019 when the California Air Resources Board identified discrepancies in Hino’s emissions certification applications. California Attorney General Rob Bonta condemned Hino for exploiting incentives meant to promote clean technology and protect public health.
Hino reported a loss of approximately $1.54 billion in its financial statements for the second quarter of 2023 to account for the expected settlement costs.
This case follows similar scandals in the auto industry, such as Volkswagen’s 2015 admission to installing “defeat devices” in nearly 11 million vehicles worldwide, resulting in over $20 billion in fines and settlements. Hino’s actions echo a broader industry challenge in adhering to emissions regulations and maintaining public trust.
