Hino Motors, a subsidiary of Toyota, has reached an agreement to settle allegations of fraudulent emissions testing, agreeing to pay $1.6 billion (£1.3bn) and plead guilty to deceiving US regulators regarding its diesel engines.
The settlement comes after the company faced charges for selling over 105,000 illegal engines in the US between 2010 and 2022.
The US Justice Department announced the settlement, which still requires approval from a Michigan court, revealing that Hino had submitted “false and fraudulent” emissions data to gain regulatory approval for its engines. According to the department, the company engaged in a “criminal conspiracy” that enabled it to bypass environmental regulations and sell its products in the US.
FBI Director Christopher Wray described the actions as a deliberate attempt to outmaneuver competitors while undermining public health and the environment.
“Hino Motors engaged in a years-long scheme to alter and fabricate emissions data in order to get a leg up over its competitors and boost their bottom line,” Wray said.
As part of the settlement, Hino will be banned from importing its diesel engines to the US for five years and will implement a new compliance and ethics program. The company has also agreed to recall non-compliant heavy-duty trucks and replace certain marine and locomotive engines across the country in a bid to offset excess air emissions.
“We take this resolution seriously and will ensure that the field fix, the Environmental Mitigation Program, and further strengthening of our compliance system are implemented,” said Satoshi Ogiso, Hino’s CEO. “We deeply apologize for the inconvenience caused to our customers and stakeholders.”
In addition to the $521.76 million criminal fine, Hino will pay $1.087 billion in civil penalties and contribute to future payments for private class-action lawsuits. The company admitted to falsifying engine certification applications between 2010 and 2019 and acknowledged that over 105,000 engines sold in the US did not meet required emissions standards.
Hino’s legal and financial troubles follow in the wake of the Volkswagen “dieselgate” scandal, where multiple automakers were found guilty of manipulating emissions data. While Volkswagen has paid over $30 billion in fines and settlements, Hino’s penalty is a significant reminder of the consequences companies face when violating environmental laws.
To cover costs from the scandal, Hino reported an extraordinary loss of ¥230 billion ($1.48 billion) in its second-quarter financial results for 2024. In response to the settlement, Hino has committed to comprehensive reforms, including improvements to its internal culture, oversight, and compliance practices to prevent future violations.
BBC and the Washington Post contributed to this report.
