Toyota's Subsidiary Settles Emission Data Fraud for $1.6B

Toyota Motor Corporation's subsidiary, Hino Motors, has agreed to a $1.6 billion settlement with U.S. authorities over allegations of falsifying emission testing data and fuel consumption data. The settlement, announced on Wednesday, includes a criminal penalty, civil penalties, and mitigation programs to offset excess air emissions. Hino Motors will also implement a comprehensive compliance and ethics program.

The settlement resolves charges that Hino Motors used altered emission test data to secure approval for importing and selling more than 110,000 diesel engines in the United States between 2010 and 2022. The engines were primarily installed in heavy-duty trucks manufactured and sold by Hino nationwide.

As part of the settlement, Hino Motors will plead guilty to engaging in a criminal conspiracy to mislead regulators and consumers, violating environmental protection laws, and endangering public health. The company will also pay a criminal fine of $521.76 million, serve a five-year term of probation, and implement a comprehensive compliance and ethics program and reporting structure.

The civil resolution includes a civil penalty of $525 million based on Hino Motors' demonstrated financial condition. The global resolution includes the second largest criminal fine and fourth largest civil penalty in the history of the U.S. Environmental Protection Agency's mobile source program.

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 through the United States. Hino Motors will also recall some trucks with engines violating emission standards.

The settlement highlights the importance of adhering to environmental regulations and the potential consequences of non-compliance. Toyota and Hino Motors must now focus on rebuilding their reputations and investing in cleaner technologies to avoid similar issues in the future.



In conclusion, the settlement serves as a reminder of the importance of environmental responsibility and the need for companies to adhere to regulations. Toyota and Hino Motors must now prioritize transparency, accountability, and investment in cleaner technologies to restore public trust and avoid future violations.