Editorial Credit: Karolis Kavolelis/Shutterstock.com.

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Toyota Subsidiary Will Pay 1.6 Billion Dollars To Resolve Emissions Fraud Scheme

Written By: CarPro | Jan 24, 2025 9:14:17 AM

A Toyota subsidiary is in hot water over what U.S. federal regulators call an emissions fraud scheme.  The U.S. Department of Justice recently announced that Hino Motors has agreed to plead guilty to a multi-year conspiracy and pay over $1.6 billion to settle criminal and civil charges. The settlement agreement is the result of a multi-agency investigation that also involved the National Highway Transportation Safety Administration (NHTSA), Environmental Protection Agency (EPA), FBI, Customs and Border Protection (CBP), Department of Transportation’s Office of Inspector General (DOT-OIG), and State of California.

Hino Motors, Ltd. (Hino Motors), Hino Motors Manufacturing U.S.A., Inc. and Hino Motors Sales U.S.A., Inc. (collectively, Hino) are accused of submitting false and fraudulent engine emission testing and fuel consumption data to regulators and the illicit smuggling of engines into the United States. Specifically the U.S. DOJ says the unlawful conduct allowed Hino "to improperly secure approvals to import and sell, and cause to be imported and sold, more than 110,000 diesel engines in the United States from 2010 to 2022."  Federal regulators say the engines were primarily installed in heavy-duty trucks manufactured and sold by Hino nationwide. 

The criminal and civil resolution is valued at over 1.6 billion. It includes a criminal fine of $521.76 million, along with five-year probation term of probation — during which Hino will be prohibited from importing any diesel engines it has manufactured into the U.S. Hino Motors, Ltd. has also agreed to entry of a forfeiture money judgment against it in the amount of $1.087 billion. 

“EPA and the American consumer rely on true and accurate data from engine manufacturers to protect our nation’s air quality. Hino’s actions directly undermined EPA’s program to protect the public from air pollution,” said Acting EPA Administrator Jane Nishida. “Today’s criminal charges and civil settlement demonstrates EPA’s commitment to hold companies like Hino Motors, Ltd. accountable for knowingly violating environmental laws and regulations that protect public health and the environment.”

Federal regulators say the global resolution includes the second largest criminal fine and fourth largest civil penalty in the history of EPA’s mobile source program. 

There is an additional civil fine of $525 million announced by the National Highway Transportation Administration (NHTSA).

“This settlement is a win for the American people and holds Hino Motors to account for falsifying fuel consumption data. NHTSA takes violations of federal law very seriously,” NHTSA Deputy Administrator Sophie Shulman said. “We would like to thank our federal partners – the U.S. Department of Justice, the Environmental Protection Agency, the U.S. DOT Office of Inspector General and U.S. Customs and Border Protection – for their invaluable work on this important case and for helping us deliver this record settlement.”

Other provisions of the civil agreement include:

  • A mitigation program, valued at $155 million, to offset excess air emissions from the violations by replacing marine and locomotive engines throughout 49 states (excluding California), including the reduction of over 41,000 tons of nitrogen oxides (NOx) emissions.
  • A recall program, valued at $144.2 million, to modify violative engines in 2017-2019 heavy-duty trucks so they comply with U.S. and California emissions laws.
  • $123.6 million to fund mitigation projects and enforcement costs in California.
  • $30.3 million to resolve California False Claims Act claims.

Hino Motors is majority owned by Toyota Motor Corp. and is headquartered in Hino, Tokyo.

 

Editorial Credit: Karolis Kavolelis/Shutterstock.com.