Toyota unit to settle emissions scandal for $1.6 billion
Toyota subsidiary Hino Motors has agreed to pay $1.6 billion (£1.3 billion) and plead guilty to deceiving US regulators about the amount of emissions produced by its diesel engines, according to the company and US government agencies .
The truck company will also be banned for five years from exporting its diesel engines to the country.
The case comes after Hino was charged with fraud in a Detroit court for selling 105,000 illegal engines in the US between 2010 and 2022.
The agreement still requires US court approval.
According to the US Justice Department, Hino submitted “false and fraudulent” emissions testing and fuel consumption data in a “criminal conspiracy” that allowed it to import and sell its engines in the United States.
FBI Director Christopher Wray said, “Hino Motors engaged in a years-long scheme to manipulate and fabricate emissions data in order to get ahead of its competitors and increase its profits.”
“In pursuing this fraudulent scheme, Hino violated laws and regulations intended to protect American health and the environment.”
In addition to the five-year diesel engine import ban, Hino has also committed to a compliance and ethics plan during that period.
Hino Chief Executive and Chairman Satoshi Ogiso said in a statement, “We take this resolution seriously and will ensure that sector reforms, environmental mitigation programs and further strengthening of our compliance systems… are implemented. “
“We deeply apologize for the inconvenience caused to our customers and stakeholders.”
The U.S. Environmental Protection Agency said Hino also agreed to recall some offending heavy-duty trucks nationwide and replace marine and locomotive engines to reduce excess air emissions.
To cover costs arising from its legal problems, Hino said that in its second-quarter financial results announced in October, it reported an extraordinary loss of 230 billion yen (£1.2 billion, $1.48 billion).
Over the past decade, several carmakers admitted to lying about emissions from their diesel engines.
What became known as the Dieselgate scandal involved all brands of the Volkswagen corporate empire, including Audi, Porsche, Seat and Skoda, as well as Volkswagen.
Volkswagen has spent more than 30 billion euros (£25 billion, $30.9 billion) paying fines, issuing recalls and compensating its customers.
