Toyota unit to settle emissions scandal for $1.6bn

Toyota's subsidiary, Hino Motors, has agreed to pay a $1.6 billion (approximately £1.3 billion) penalty and admit to deceiving US regulators regarding diesel engine emissions. Additionally, the company will be prohibited from exporting diesel engines to the United States for five years.

Previously, Hino Motors was charged with fraud in a Detroit court for selling 105,000 illegal engines in the US between 2010 and 2022. The settlement agreement still requires approval from a US court. According to the US Department of Justice, Hino Motors submitted "false and fraudulent" emissions testing and fuel consumption data, a "criminal conspiracy" that enabled it to import and sell its engines in the US.

FBI Director Christopher Wray stated, "Hino Motors implemented a years-long scheme to tamper with and falsify emissions data in order to gain a competitive advantage and increase profits. To advance this fraudulent scheme, Hino violated laws and regulations designed to protect the health and environment of the American people." In addition to the five-year ban on diesel engine imports, Hino Motors has also committed to implementing compliance and ethics programs during this period.

Hino Motors CEO and President, Satoshi Ogiso, stated in a release, "We take this resolution seriously and will ensure that on-site remediation, environmental mitigation plans, and further enhancements to our compliance system are implemented. We deeply apologize for the inconvenience caused to our customers and stakeholders." The US Environmental Protection Agency stated that Hino Motors has also agreed to recall some non-compliant heavy-duty trucks and replace marine and locomotive engines nationwide to offset excessive air emissions.

To account for the losses caused by its legal issues, Hino Motors stated that in its second-quarter financial results released in October, the company reported a special loss of 230 billion yen (approximately £1.2 billion, $1.48 billion). Over the past decade, several automakers have admitted to misrepresenting the emissions of their diesel engines. In the scandal known as "Dieselgate," brands across the Volkswagen Group were implicated, including Audi, Porsche, Seat, and Skoda, as well as Volkswagen itself. Volkswagen has already spent over 30 billion euros (approximately £25 billion, $30.9 billion) on fines, recalls, and customer compensation.