Hino Motors Admits to Emissions Fraud, Faces $1.6 Billion in Penalties

The US Justice Department announced that Hino Motors, Toyota’s truck and engine manufacturer subsidiary, pleaded guilty over an emissions fraud scheme over several years in the United States and will be penalized for $1.6 billion.

The company was charged for unlawfully selling 105,000 diesel engine vehicles in the US that release emissions more than the standard from 2010 to 2022. Moreover, Hino also falsified emissions data at least as far back as 2003.

After accepting the guilty plea, a US District Court judge in Detroit sentenced the company to pay a criminal fine of $521.76 million and serve a probation for five years. During this period, Hino will not be allowed to import its diesel engines into the US.

Moreover, the court also ordered the company to pay a forfeiture money judgment at the value of $1.087 billion. 

Hino admitted to having used shortcuts, falsified data and conducted improper tests between 2010 and 2019. Its president, Satoshi Ogiso, stated in January that the company’s culture, oversight and practices will be improved.

Besides paying, Hino must replace marine and locomotive engines and fix engines in 2017-2019 heavy-duty trucks. This $155 million mitigation program and $144.2 million recall program are part of the settlement, according to the US Environmental Protection Agency.

This Toyota’s subsidiary is not the only automaker selling vehicles with excess diesel emissions over the last decade. Volkswagen also admitted in 2015 to cheating emissions tests. This German company had to pay fines, penalties and settlements at the value of $20 billion.