Hino Motors' $1.6 Billion Diesel Emissions Settlement

Hino Motors, a division of Toyota, has reached a $1.6 billion settlement with U.S. authorities over excess diesel engine emissions. The deal includes criminal penalties and requires the company to implement a comprehensive compliance program. This follows a multi-year investigation into emissions data falsification.

Hino Motors, a unit of Toyota Motor, has consented to a $1.6 billion settlement with U.S. authorities, pleading guilty to charges involving excess diesel engine emissions impacting over 105,000 vehicles. The Japanese manufacturer was implicated in fraudulent activities, unlawfully selling engines between 2010 and 2022 that violated emissions standards, as announced on Wednesday.

The settlement awaits judicial approval and involves a $521.76 million criminal fine, alongside $442.5 million in civil penalties to U.S. agencies and $236.5 million allocated to California. A 2022 report found Hino had manipulated emissions data since at least 2003. Under the settlement terms, Hino will undertake a five-year probation and implement a compliance and ethics program, as per the Justice Department and EPA directives.

This agreement encompasses mitigation efforts valued at $155 million to counterbalance excess emissions by replacing engines and a $144.2 million recall program to rectify engines in certain heavy-duty trucks. The EPA disclosed that Hino had submitted falsified engine certification applications from 2010-2019. Hino's President Satoshi Ogiso acknowledged improvements in oversight and compliance, marking this settlement as a pivotal step towards resolving legacy issues.

(With inputs from agencies.)