Hino Motors, a Toyota Motor subsidiary, has reached a $1.6 billion settlement with U.S. authorities over diesel engine emissions violations involving more than 105,000 heavy-duty vehicles sold in the United States from 2010 to 2022.
The settlement, which is pending court approval, includes criminal and civil penalties and measures to address excess emissions.
The agreement includes a $521.76 million criminal fine, $442.5 million in civil penalties to U.S. agencies, and $236.5 million to California. It also mandates a $155 million emissions mitigation program and a $144.2 million recall effort for 2017-2019 heavy-duty truck engines.
As part of the settlement, Hino will serve a five-year probation period, during which it will be prohibited from importing diesel engines into the U.S.
The Environmental Protection Agency (EPA) disclosed that Hino had submitted incorrect emissions data and improperly conducted testing between 2010 and 2019. The California Air Resources Board first identified irregularities in 2019, leading to broader investigations uncovering practices that began as early as 2003.
Hino President Satoshi Ogiso stated that the company has taken steps to enhance its compliance and oversight processes. He called the settlement a “significant milestone” in resolving longstanding issues.
This case highlights the increased scrutiny on automakers for emissions-related practices. For example, Volkswagen faced over $20 billion in penalties after admitting to using software to bypass emissions tests in 2015.
Hino had previously recorded a $1.54 billion loss in October to account for the settlement costs.
