The fine Toyota’s Hino Motors got his with is dwarfed only by the Volkswagen Group fine.
Hino Motors, a Toyota Group subsidiary, has agreed to pay a massive $1.6 billion settlement over fraudulent diesel emissions testing data submitted to US regulators. This case represents one of the largest penalties imposed on an automaker since the infamous Volkswagen diesel scandal.
Breaking Down the $1.6 Billion Settlement
The settlement package includes several components:
- $236.5 million civil penalty to California
- $525 million in additional civil penalties
- $521.7 million criminal fine
- Additional related costs
Scope of the Violations
The investigation revealed that Hino Motors, which Toyota acquired majority ownership of in 2001, submitted false data for approximately:
- 105,000 on-road diesel engines
- 6,000 off-road engines
The company has agreed to plead guilty to these violations and will implement a recall program for specific engines used in 2017-2019 trucks to ensure compliance with emissions standards.
Broader Industry Context
This settlement highlights an ongoing issue within the automotive industry regarding emissions compliance. Since the Volkswagen scandal nearly a decade ago, several major manufacturers have faced similar accusations:
- Stellantis brands (Ram and Jeep) with multiple violations
- Mercedes and BMW investigations in South Korea (2023)
- Audi’s emissions scrutiny
- Toyota’s recent issues with certification tests in Japan
The Hino settlement comes at a challenging time for Toyota Group, which is already dealing with certification test irregularities in Japan. The issues, initially discovered at Daihatsu (another Toyota Group company), have expanded to affect several Toyota models, which led to temporary production stoppages.
While the settlement awaits final approval from a federal judge, this case underscores the continuing challenges automakers face in meeting emissions standards and the severe consequences of non-compliance.
Most auto manufacturers have been, to a certain degree, ‘cooking’ the numbers when it comes to diesel emissions. After the Dieselgate scandal unfolded in the mid-to-late 2010s, regulators in the US, EU and Japan all scrambled to retest cars and seize documents from automakers directly.
