U.S. authorities have reached a significant $1.6 billion settlement deal with Hino Motors, a subsidiary of Toyota, after allegations surfaced that the company misled regulators regarding the emissions levels of its diesel engines. The deal was announced late Wednesday, with details revealing that Hino utilized altered emissions test data to secure approval for importing and selling over 110,000 diesel engines in the U.S., primarily for use in heavy-duty trucks manufactured by Hino.
The Environmental Protection Agency (EPA) disclosed that as part of the settlement, Hino will plead guilty to participating in a criminal conspiracy aimed at deceiving regulators and consumers. This included violations of environmental protection laws and posing risks to public health, according to a news release by Attorney General Merrick Garland. U.S. regulators collaborated with the state of California, which upholds stringent vehicle emission standards, to devise criminal and civil agreements with Hino totaling more than $1.6 billion.
The settlement encompasses a $521.76 million criminal penalty along with $442.5 million in civil penalties directed to U.S. authorities, in addition to $236.5 million earmarked for California, as reported by Reuters. Acting EPA administrator Jane Nishida condemned Hino’s actions for directly undermining the EPA’s efforts to safeguard the public against air pollution. The proposed resolution is pending approval from a federal district court judge in Michigan.
U.S. attorney for the Eastern District of Michigan, Dawn Ison, emphasized the severe consequences of corporate misconduct on the well-being of Americans and the environment. The terms of the settlement include a five-year probationary period during which Hino is prohibited from importing diesel engines it has manufactured into the U.S. Furthermore, Hino is mandated to establish a comprehensive compliance and ethics program. The company is also required to recall certain trucks equipped with engines that violate emissions standards and allocate approximately $155 million towards replacing marine and locomotive engines across the U.S. to counteract excess air emissions, according to the EPA.
