Hino to pay $1.6 billion for falsifying engine emissions data in US

Hino A05C was one model sold in the US using falsified data (Photo: Hino Motors)

The US Justice Department, the EPA, FBI, Customs and Border Protection, various other departments and the State of California have reached criminal and civil resolutions with Hino Motors Ltd, Hino Motors Manufacturing USA and Hino Motor Sales USA, for violations related to the submission of false and fraudulent engine emission testing and fuel consumption data to regulators and the subsequent smuggling of engines into the United States.

According to the related documentation, this unlawful conduct allowed Hino, a subsidiary of Toyota Motor, to improperly secure approvals for and sale of more than 110,000 diesel engines into the US between 2010 and 2022. The engines were sold in trucks across the US.

As part of the plea agreement, Hino Motors admitted that between 2010 and 2019, it submitted false applications for engine certification approvals, which included altered emission test data. In addition, the company conducted tests improperly and fabricated data without conducting any underlying tests.

As a result of this, Hino has agreed to please guilty to engaging in a multi-year criminal conspiracy which will result in a criminal fine of $521.76 million. Further, Hino has agreed to entry of a forfeiture money judgment amounting to $1.087 billion. The Japanese truck OEM will also serve a five-year term of probation over which it will be prohibited from importing diesel engines into the US.

Other elements of the civil agreement include a $155 million mitigation program intended to offset emissions from the non-compliant engines in marine and locomotive applications through replacement or installation of idle technology systems throughout 49 states (excluding California).

A $123.6 million fund will be set up in California for projects intended to enforce mitigation measures, plus $30.3 million to resolve California False Claims Act violations.

Mitigation projects should reduce emissions by about 42,000 tons of NOx, 376 tons of particulate matter, 6,200 tons of CO2 and 135 tons of N2O. The NOx reductions are estimated to be equivalent to removing 110,000 heavy-duty trucks from operation.

“Hino Motors engaged in a years-long scheme to alter and fabricate emissions data in order to get a leg up over its competitors and boost their bottom-line,” said FBI director Christopher Wray. “To further this fraudulent scheme, Hino violated laws and regulations intended to protect American’s health and the environment.”

“[The] 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,” said acting EPA Administrator Jane Nishida.