Hino Motors, a Toyota subsidiary, will pay $1.6 billion and plead guilty to deceiving US regulators about emissions from its diesel engines. The company will face a five-year ban on importing diesel engines into the United States.

Details of the Scandal and Settlement

Hino Motors admitted to selling 105,000 non-compliant engines in the US between 2010 and 2022. This admission follows fraud charges filed in Detroit court. The settlement still requires US court approval.

The US Justice Department stated that Hino provided “false and fraudulent” emissions and fuel consumption data. This misconduct was part of a “criminal conspiracy” to gain competitive advantages and boost profits. FBI Director Christopher Wray accused Hino of altering emissions data, violating laws meant to protect public health and the environment.

In addition to the five-year import ban, Hino must implement a compliance and ethics plan during this period. Hino’s CEO, Satoshi Ogiso, issued an apology, promising to improve compliance systems and mitigate environmental impacts.

Commitments and Broader Context

As part of the agreement, Hino will recall certain heavy-duty trucks and replace marine and locomotive engines nationwide to offset excess emissions. The US Environmental Protection Agency confirmed these measures. Hino also reported a 230 billion yen extraordinary loss ($1.48 billion) in October’s financial results to address legal costs.

This case echoes the broader “dieselgate” scandal, where multiple automakers, including Volkswagen, Audi, and Porsche, admitted to falsifying emissions data. Volkswagen alone has paid over 30 billion euros in fines, recalls, and compensation.

Hino’s resolution highlights growing enforcement of environmental regulations and the consequences of corporate misconduct.