A division of Toyota(TM) that makes trucks will pay more than $1.6 billion in fines and admit to violations related to submitting false and fraudulent engine emissions test and fuel consumption data to regulators and illegally smuggling engines into the United States.
Toyota subsidiary Hino Motors first admitted in 2022 that it had systematically falsified emissions data as early as 2003.
It's part of a wider scandal involving emissions testing that has also ensnared other automakers.
As of 12:46:52 PM ET. The market is open.
The U.S. Department of Justice said Hino’s illegal conduct allowed it to improperly obtain import and sales approvals between 2010 and 2022, resulting in the import and sale of more than 110,000 diesel engines in the United States. These engines are primarily installed in heavy-duty trucks and are manufactured and sold nationwide by Hino.
"Hino knew the engines had to meet the requirements it had to be certified to operate in the United States, but for years it falsified data to circumvent regulations," Todd King, assistant attorney general for the U.S. Department of Justice's Environment and Natural Resources Division, said in a prepared statement. ." “Hino’s actions resulted in massive amounts of air pollution and were serious violations of our nation’s environmental, consumer protection and import laws.”
Hino Motors Ltd. has agreed to plead guilty to participating in a multi-year criminal conspiracy. The plea agreement, which is subject to court approval, requires the company to pay a $521.76 million criminal fine and serve five years in prison. During the probation period, it will be prohibited from importing any diesel engines it produces into the United States. Implement a comprehensive compliance and ethics program and reporting structure.
Hino also agreed to a forfeiture judgment of approximately $1.1 billion. Hino's future payments on its civil settlement obligations as part of the plea agreement, as well as future payments as part of settlements of civil class action lawsuits filed by private plaintiffs, will count toward its criminal forfeiture money judgment obligations.
The Department of Justice, Environmental Protection Agency, FBI, Customs and Border Protection, Department of Transportation's Office of Inspector General, National Highway Traffic Safety Administration and the State of California entered into criminal and multiple civil settlements with Japan's Hino, which are subject to judicial review. Department approved the U.S. District Court for the Eastern District of Michigan.
Hino will pay $525 million in civil penalties in separate civil settlements brought by the federal government and the state of California over environmental, customs and fuel economy claims.
As part of the plea agreement, Hino admitted to submitting, and causing to be submitted, false applications for engine certification approval between 2010 and 2019. The company also admitted it submitted fraudulent carbon dioxide emissions testing data.
Hino said in a statement on Thursday that its agreement resolves all of the company's outstanding legal issues in the United States related to its legacy emissions issues.
"We deeply apologize for the inconvenience caused to our customers and stakeholders. To prevent this type of issue from happening again, we have implemented company-wide changes, including meaningful improvements to our internal culture, oversight and compliance practices," ” said CEO Satoshi Ogiso.