Toyota Motor's truck unit Hino Motors has agreed to pay $1.6 billion to settle claims with U.S. agencies and pleaded guilty to exceeding diesel engine emissions standards for vehicles it sold in the U.S. from 2010 to 2022.
The Japanese truck and engine maker announced a deal with the U.S. government on Wednesday. Hino was previously charged with fraud in the U.S. District Court in Detroit for illegally selling 105,000 heavy-duty diesel engines in the U.S. that did not meet emissions standards.
The settlement, which still requires approval by a U.S. judge, includes a $521.76 million criminal penalty against U.S. authorities, a $442.5 million civil penalty against U.S. authorities, and a $236.5 million civil penalty against California.
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A group commissioned by the company said in a 2022 report that Hino has Falsified emissions data for some engines dating back to at least 2003.
Hino agreed to plead guilty to participating in a multi-year criminal conspiracy and serve five years in prison, during which time it will be suspended, it will be prohibited from importing any diesel engines it produces into the United States, and it will undergo a comprehensive compliance and ethics review of the plan, the Justice Department and Environmental Protection Agency said.
Assistant Attorney General Todd King said Hino “faked data for years to circumvent regulations,” adding that the company's “conduct resulted in massive amounts of air pollution and serious violations of our country's environmental, consumer protection and import laws.”
The settlement includes a $155 million mitigation program to offset excess air emissions from the violations through replacement of marine and locomotive engines, and a $144.2 million recall program to repair 2017-2019 heavy-duty truck engines
The EPA said Hino admitted to submitting false engine certification approval applications and tampering with emissions test data between 2010 and 2019, improperly conducting tests and falsifying data without conducting any basic testing.
Hino President Satoshi Ogiso said the company has improved its internal culture, oversight and compliance practices.
“This resolution is an important milestone in addressing the legacy issues we have been working to ensure that they no longer become part of Hino's operations or culture,” he said in a statement.
California survey finds inconsistencies in data
The California Air Resources Board began its investigation in 2019, when it reviewed Hino's certification application and found inconsistencies in emissions data.
“Hino knowingly and illegally took advantage of California incentives designed to accelerate the adoption of clean transportation technologies that protect the health and safety of Californians from pollution,” said California Attorney General Rob Bonta.
Hino said it booked an abnormal loss of 230 billion yen (about $1.54 billion) in its second-quarter results in October to cover expected costs of settling the lawsuit.
Over the past decade, several automakers have admitted selling vehicles with excessive diesel emissions, including Volkswagen, which in 2015 paid more than $20 billion after admitting to cheating emissions tests by installing “defeat devices” and sophisticated software in its cars. USD fines, penalties and settlements.
- Reuters Additional editing by Jim Pollard
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