EPA announced that Toyota Motor Corporation subsidiary Hino Motors, Ltd. is to pay more than $1.6 billion to settle accusations of a multi-year criminal conspiracy related to emissions cheating. <\/a><\/p>\nThe total penalty includes a criminal fine of $521.76 million and a forfeiture money judgment of $1.087 billion. In a separate action, Hino was also ordered to a civil penalty of $525 million\u00a0to resolve environmental, customs and fuel economy claims by the federal government and the\u00a0state of California.<\/p>\n
Authorities say that Hino\u2019s global resolution includes the second largest criminal fine and fourth largest civil penalty in the history of EPA\u2019s mobile source program<\/p>\n
Federal authorities allege that Hino submitted false and fraudulent engine emission testing and fuel consumption data to regulators and took part in the illicit smuggling of engines into the United States.<\/p>\n
By submitting false emissions information to regulators, Hino was able to illegally import and sell more than 110,000 diesel engines in the United States from 2010 to 2022, the EPA says. Most of these engines were installed in heavy-duty trucks manufactured by Hino.<\/p>\n
The EPA says the scheme was discovered during recent confirmatory testing of Hino\u2019s engines.<\/p>\n
As part of the settlement, Hino has agreed to plead guilty to engaging in a multi-year criminal conspiracy and to a five year term of probation, during which the company may not import any diesel engines it has manufactured into the United States.<\/p>\n
As a result of the EPA\u2019s investigation into Hino\u2019s engine scheme, the agency voided engine approvals, called \u201ccertificates of conformity,\u201d for Hino\u2019s 2010-2019 diesel engines for heavy-duty trucks and nonroad equipment.<\/p>\n
\u201cThis is the largest voiding action ever taken by the EPA, reflecting the egregiousness of the conduct and the flagrant disregard for the EPA\u2019s certification program. That program is designed to provide a level playing field for vehicle and engine manufacturers seeking to do business in the United States,\u201d the EPA said.<\/p>\n
\u201cEPA and the American consumer rely on true and accurate data from engine manufacturers to protect our nation\u2019s air quality. Hino\u2019s actions directly undermined EPA\u2019s program to protect the public from air pollution,\u201d\u00a0said Acting EPA Administrator Jane Nishida. \u201cToday\u2019s criminal charges and civil settlement demonstrates EPA\u2019s commitment to hold companies like Hino Motors, Ltd. accountable for knowingly violating environmental laws and regulations that protect public health and the environment.\u201d<\/p>\n
\u201cToday, Hino Motors, a subsidiary of Toyota, agreed to plead guilty to engaging in a criminal conspiracy to mislead regulators and consumers that violated federal environmental laws and endangered public health,\u201d\u00a0said Attorney General Merrick B. Garland. \u201cNo company is above the law. I am grateful to our federal and state partners for their work to hold Hino accountable for its criminal misconduct.\u201d<\/p>\n
Hino Responds to EPA Announcement<\/h2>\n
Hino Motors provided the following statement on January 16 in response to the EPA\u2019s announcement:<\/p>\n
Hino Motors, Ltd.(HML) has reached an agreement with the U.S. Department of Justice (DOJ)to resolve its criminal investigation, first disclosed by Hino in March 2022, into engine emissions certification testing and performance issues in the U.S. market. HML and its U.S. subsidiaries have also reached a consolidated civil resolution with U.S. federal and California government authorities to resolve their civil investigations into the issues. Hino voluntarily disclosed these issues to U.S. authorities in 2019 and has provided what the U.S. Department of Justice has called \u201cexemplary\u201d cooperation with the DOJ\u2019s investigation. The agreements resolve all of the Company\u2019s outstanding legal issues in the United States related to its legacy emissions issues.<\/em><\/p>\nUnder the criminal resolution with the DOJ, HML has agreed to enter a guilty plea and pay criminal penalties totaling $521,760,000, which reflects a significant reduction for cooperation credit. Hino also has agreed to forfeit the proceeds obtained as a result of the charged conduct but expects this obligation to be fully met by credits for payments associated with the civil resolution, resulting in no additional costs to the Company.<\/em><\/p>\nTo resolve civil claims, HML and its U.S. subsidiaries have agreed to pay $442,500,000 in civil penalties to U.S. federal authorities, including the DOJ, the U.S. Environmental Protection Agency (EPA), National Highway Traffic Safety Administration (NHTSA), and U.S. Customs and Border Protection (CBP), as well as $236,500,000 in civil penalties and other paymentsto California state authorities, including the California Air Resources Board (CARB) and the California State Attorney General\u2019s Office. Subject to regulatory approval, the Company will also
implement a proposed field fix for Model Year 2017-2019 J08E and J05E on-road engines and undertake an Environmental Mitigation Program to offset the environmental impact of past and future excess emissions from the affected engines.<\/em><\/p>\n\u201cThis resolution is a significant milestone toward resolving legacy issues that we have worked hard to ensure are no longer a part of Hino\u2019s operations or culture. We deeply apologize for the inconvenience caused to our customers and stakeholders. In order to prevent a recurrence of this kind of issue, we have implemented company-wide reforms, including meaningful improvements to our internal culture, oversight, and compliance practices,\u201d said Satoshi Ogiso, President and CEO of Hino Motors Ltd. \u201cWe take this resolution seriously and will ensure that the field fix, the Environmental Mitigation Program, and further strengthening of our compliance
system, which have been agreed as part of the resolutions, are implemented. We commit to moving forward as a company that can be of service to society.\u201d <\/em><\/p>\nAs previously disclosed, the legacy issues do not affect the driving performance of Hino vehicles and do not raise any safety concerns. Following the resolution, Hino vehicles on the road in the United States remain legal to own, operate, service, and repair. The agreements will not impact the manufacture and sale of new Hino trucks in the United States, which are equipped with engines manufactured by third parties.<\/em><\/p>\n<\/div>\n
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