Hino Motors Faces $1.6 Billion Reckoning Over Emissions Deception

Hino Motors, a subsidiary of Toyota, has agreed to pay $1.6 billion in a settlement for deceiving US regulators regarding emissions from its diesel engines. This agreement comes after Hino was charged with fraud in a Detroit court for selling 105,000 illegal diesel engines in the US between 2010 and 2022. In addition to the hefty financial penalty, Hino is now banned from exporting these engines to the US for five years.

The US Justice Department accused Hino of submitting falsified emissions testing and fuel consumption data, describing the actions as part of a ‘criminal conspiracy’ that sought to gain a competitive advantage and enhance profits while violating health and environmental regulations. FBI Director Christopher Wray stated that Hino’s actions were a significant breach of trust that ultimately endangered public welfare.

As part of the settlement, Hino has also agreed to a comprehensive compliance and ethics program. Hino’s CEO, Satoshi Ogiso, emphasized the company’s commitment to remedying the situation and implementing necessary changes to avoid future incidents. Additionally, Hino will be required to conduct a recall of certain affected heavy-duty trucks and to replace marine and locomotive engines to mitigate the excess air emissions.

Financially, Hino is feeling the impact of its legal troubles, reporting an extraordinary loss of 230 billion yen (approximately $1.48 billion) in its second-quarter results. This latest incident adds Hino to a list of automotive manufacturers implicated in emissions scandals over the past decade, reminiscent of the notorious “dieselgate” controversy that heavily impacted Volkswagen and its associated brands, costing the company over €30 billion in fines and compensation.