Hino Motors, a Toyota subsidiary, has agreed to a $1.6 billion settlement for deceiving US regulators. The company pleaded guilty to providing false emissions data about its diesel engines. As part of the deal, Hino will be banned from importing diesel engines into the US for five years.
Fraud Charges and Court Approval
The charges stem from accusations that Hino sold 105,000 non-compliant engines in the US between 2010 and 2022. Prosecutors allege the company falsified emissions and fuel consumption data in a deliberate scheme. The settlement, still awaiting court approval, was described by the US Justice Department as part of a “criminal conspiracy” to evade regulations.
FBI Director Christopher Wray criticized Hino for fabricating data to gain a competitive edge and boost profits. He emphasized that the scheme violated laws meant to protect public health and the environment.
Commitments and Apologies from Hino
Beyond the import ban, Hino pledged to implement a compliance and ethics plan during the five-year period. CEO Satoshi Ogiso apologized, promising to execute corrective measures, including fixing affected vehicles and improving compliance systems. He acknowledged the inconvenience caused to customers and stakeholders.
The US Environmental Protection Agency announced that Hino would recall certain heavy-duty trucks and replace non-compliant marine and locomotive engines. These efforts aim to offset excess air pollution caused by the fraudulent emissions data.
In its financial results, Hino disclosed a loss of 230 billion yen ($1.48 billion) in the second quarter to cover legal costs.
Broader Dieselgate Scandal
This settlement highlights ongoing fallout from the dieselgate scandal, where multiple automakers admitted to misleading emissions data. Volkswagen and its subsidiaries, including Audi, Porsche, Seat, and Skoda, faced heavy penalties. Volkswagen alone has paid over €30 billion ($30.9 billion) in fines, recalls, and customer compensation.
The Hino case adds another chapter to the global reckoning over emissions fraud, reinforcing the need for stringent oversight and ethical practices.