Toyota subsidiary Hino Motors pays $1.6B to resolve criminal, civil emissions violations
The U.S. Environmental Protection Agency (EPA), in partnership with the Justice Department, FBI, Customs and Border Protection (CBP), Department of Transportation’s Office of Inspector General (DOT-OIG), National Highway Traffic Safety Administration (NHTSA), and the state of California, has resolved multiple criminal and civil issues with Hino Motors, Ltd. (Hino Motors), Hino Motors Manufacturing U.S.A., Inc., and Hino Motors Sales U.S.A., Inc. (collectively, Hino). Allegedly, the companies committed violations related to the submission of false and fraudulent engine emission testing and fuel consumption data to regulators and the illicit smuggling of engines into the United States. Hino’s illegal activities were discovered by the EPA when the agency conducted confirmatory testing of Hino’s engines. The agency then voided engine approvals, called “certificates of conformity,” for Hino’s 2010-2019 diesel engines for heavy-duty trucks and nonroad equipment.
To resolve these issues, Hino Motors, Ltd. has agreed to plead guilty to engaging in a multi-year criminal conspiracy. As part of the agreement, the company will:
- Pay a criminal fine of $521.76 million
- Serve a five-year term of probation
- Be prohibited from importing any diesel engines it has manufactured into the United States within the probationary period
- Implement a comprehensive compliance and ethics program and reporting structure
Additionally, Hino Motors, Ltd. has also agreed to entry of a forfeiture money judgment against it in the amount of $1.087 billion. This means that Hino’s future payments towards its civil settlement obligations or future payments as part of a civil class action settlement will be credited towards its criminal forfeiture money judgment obligation. Hino will also pay a civil penalty of $525 million to resolve civil environmental, customs, and fuel economy claims by the federal government and the state of California. Additional stipulations of the civil agreement include:
- A $155 million mitigation program to offset excess air emissions from the violations by replacing marine and locomotive engines throughout 49 states
- A $144.2 million recall program to modify violative engines in 2017-2019 heavy-duty trucks
- $123.6 million to fund mitigation projects and enforcement costs in California
- $30.3 million to resolve California False Claims Act claims
What people are saying
In a recent quote, Acting EPA Administrator Jane Nishida said, “EPA and the American consumer rely on true and accurate data from engine manufacturers to protect our nation’s air quality. Hino’s actions directly undermined EPA’s program to protect the public from air pollution. Today’s criminal charges and civil settlement demonstrates EPA’s commitment to hold companies like Hino Motors, Ltd. accountable for knowingly violating environmental laws and regulations that protect public health and the environment.”
Attorney General Merrick B. Garland added, “Today, 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. No 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.”
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