Hino Motors, a Toyota subsidiary, will pay $1.6 billion and admit guilt for deceiving US regulators about diesel engine emissions. The company will also face a five-year ban on exporting its diesel engines to the United States.
Fraudulent Practices and Legal Consequences
Hino was charged with fraud in a Detroit court for selling 105,000 non-compliant engines in the US between 2010 and 2022. The US Justice Department revealed that Hino falsified emissions and fuel consumption data in a conspiracy to gain market advantage. This enabled the company to import and sell engines that violated regulations.
FBI Director Christopher Wray criticized Hino’s actions, stating the company manipulated emissions data to outdo competitors and maximize profits. By doing so, Hino broke laws designed to protect public health and the environment.
A US court must approve the settlement, which includes the import ban and a compliance plan. Hino has committed to ethical and regulatory reforms during the five-year restriction period.
Apologies, Mitigation, and Financial Impact
Hino CEO Satoshi Ogiso expressed remorse, pledging to fix customer issues and strengthen compliance systems. The company will recall some heavy-duty trucks and replace marine and locomotive engines to reduce excess emissions nationwide.
Hino acknowledged the financial toll of its legal troubles. In October, it reported a loss of 230 billion yen ($1.48 billion, £1.2 billion) in its second-quarter financial results to account for these costs.
Wider Context: The Dieselgate Scandal
The Hino case adds to a decade of scandals involving diesel emissions fraud. Several automakers, including Volkswagen, Audi, Porsche, Seat, and Skoda, admitted to similar deceptions. Known as “dieselgate,” the scandal has cost Volkswagen over €30 billion ($30.9 billion, £25 billion) in fines, recalls, and customer compensation.
Hino’s settlement highlights the ongoing repercussions for automakers that fail to comply with environmental laws and prioritize profit over ethics.