Hino Motors Fined $1.6 Billion for Emissions Fraud in the U.S.

Hino Motors, a subsidiary of Toyota (NYSE: TM), pleaded guilty to a years-long emissions fraud scheme in the U.S. and was ordered to pay $1.6 billion in penalties, the U.S. Justice Department announced.

A federal court in Detroit sentenced the Japanese truck and engine manufacturer to a $521.76 million fine and five years of probation, barring it from importing its diesel engines into the U.S. Additionally, a $1.087 billion forfeiture judgment was imposed.

The U.S. Environmental Protection Agency (EPA) condemned Hino’s actions, stating that companies fabricating emissions data to evade regulations will be held accountable.

Hino admitted to falsifying emissions data in over 105,000 U.S. vehicles from 2010 to 2022. A company-commissioned report in 2022 revealed fraudulent practices dating back to at least 2003. The company manipulated test data, submitted false certification applications, and conducted improper emissions tests between 2010 and 2019.

As part of the settlement, Hino will implement a $155 million mitigation program to offset excess emissions and a $144.2 million recall program to fix 2017-2019 heavy-duty truck engines. In anticipation of litigation costs, the company recorded a 230 billion yen ($1.54 billion) loss in its October earnings report.

Hino President Satoshi Ogiso previously stated that the company has since improved compliance and oversight. Toyota declined to comment.

The case follows similar emissions scandals, including Volkswagen’s 2015 "Dieselgate" scandal, which resulted in over $20 billion in penalties.

Hino’s penalty highlights increasing regulatory scrutiny on automakers over environmental compliance, reinforcing the consequences of emissions fraud.