Toyota subsidiary Hino Motors has agreed to pay $1.6 billion (£1.3 billion) and plead guilty to deceiving US regulators about emissions data for its diesel engines.
The company will also face a five-year ban on exporting diesel engines to the US.
The move follows fraud charges filed in a Detroit court, accusing Hino of selling 105,000 non-compliant engines in the US between 2010 and 2022.
The settlement still requires approval from a US court.
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Details of the Fraud Scheme
According to the US Justice Department:
- Hino submitted false and fraudulent emissions testing and fuel consumption data.
- The company engaged in a “criminal conspiracy” to bypass regulations.
- This deception allowed Hino to import and sell diesel engines in the U.S. market.
FBI Director Christopher Wray condemned Hino’s actions, stating:
“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.”
The US Environmental Protection Agency (EPA) said Hino has also agreed to:
- Recall certain heavy-duty trucks.
- Replace marine and locomotive engines nationwide to offset excess emissions.
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Hino’s Response and Financial Impact
Hino’s chief executive and president, Satoshi Ogiso, acknowledged the wrongdoing, stating:
“We deeply apologize for the inconvenience caused to our customers and stakeholders.”
He added the company is committed to implementing a compliance and ethics plan throughout the five-year ban period.
To cover costs linked to its legal troubles, Hino previously reported an extraordinary loss of 230 billion yen (£1.2 billion, $1.48 billion) in its second-quarter financial results in October.
Echoes of the Dieselgate Scandal
Hino’s emissions fraud is similar to the infamous “Dieselgate” scandal that rocked the automotive industry. In that case:
- Volkswagen and its subsidiaries, including Audi, Porsche, Seat, and Skoda, were caught using software to manipulate emissions data.
- The company has since spent over 30 billion euros (£25 billion, $30.9 billion) on fines, recalls, and customer compensation.
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What Lies Ahead for Hino Motors?
With a five-year export ban in place and a massive financial penalty, Hino faces an uphill battle to rebuild trust and ensure regulatory compliance.
The company’s focus now shifts to implementing its compliance measures and fulfilling its obligations under the settlement. Industry observers will be watching closely to see how the company navigates the fallout of this scandal.
