Hino Motors, a subsidiary of Toyota Motor Corporation, has agreed to plead guilty and pay over $1.6 billion to resolve charges related to emissions fraud. The U.S. Environmental Protection Agency (EPA), Justice Department, FBI, Customs and Border Protection (CBP), Department of Transportation’s Office of Inspector General (DOT-OIG), National Highway Traffic Safety Administration (NHTSA), and the state of California reached these resolutions with Hino Motors, Ltd., Hino Motors Manufacturing U.S.A., Inc., and Hino Motors Sales U.S.A., Inc.
The allegations involve submitting false engine emission testing data and fuel consumption information to regulators and smuggling engines into the United States. This conduct enabled Hino to import and sell more than 110,000 diesel engines in the U.S. from 2010 to 2022.
Acting EPA Administrator Jane Nishida commented on the case: “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.” Attorney General Merrick B. Garland stated, “Today, Hino Motors...agreed to plead guilty...No company is above the law.”
As part of a global resolution, Hino will pay a criminal fine of $521.76 million and serve a five-year probation period during which it cannot import any diesel engines it manufactures into the United States. Additionally, there is a forfeiture money judgment against Hino for $1.087 billion.
Civil resolutions include paying $525 million in penalties based on its financial condition. The settlement involves several environmental initiatives valued at millions aimed at offsetting excess emissions caused by non-compliance.
The EPA's investigation revealed that between 2010 and 2019, Hino submitted false applications for engine certification approvals by altering emission test data without proper testing or disclosing software functions affecting emissions control systems.
This case highlights significant regulatory violations impacting public health through increased levels of NOx, particulate matter, CO2, and N2O emissions beyond legal limits.
A plea hearing date has not been set yet; updates will be provided by the Justice Department via their Victim Notification System for those affected by this misconduct.
