In a significant development highlighting the critical importance of corporate ethics and compliance, Hino Motors, a subsidiary of Toyota, has admitted to a prolonged emissions fraud scheme in the United States. The company has been fined $1.6 billion, encompassing a $521.76 million penalty and a $1.087 billion forfeiture money judgment. ​

The fraudulent activities involved falsifying emissions data for over 105,000 vehicles sold in the U.S. between 2010 and 2022. Hino Motors manipulated certification applications and emission test data from 2010 to 2019, leading to vehicles that did not comply with U.S. environmental standards being introduced into the market.

Beyond the financial penalties, the settlement includes a $155 million mitigation program aimed at offsetting the excess emissions produced by the non-compliant vehicles. This program involves replacing marine and locomotive engines to reduce environmental impact. Additionally, a $144.2 million recall program has been established to address engine issues in trucks from model years 2017 to 2019.

In response to the revelations, Hino Motors has claimed improvements in its internal culture and compliance practices.The company asserts that steps have been taken to prevent future misconduct and to align operations with legal and ethical standards.

This case is part of a broader pattern where automakers, including Volkswagen, have faced substantial penalties for emissions-related fraud. These incidents underscore the necessity for robust compliance programs and ethical vigilance within the automotive industry to ensure adherence to environmental regulations and to maintain public trust. ​

The Hino Motors case serves as a stark reminder of the consequences that can arise from ethical lapses and non-compliance, emphasizing the critical role of integrity in corporate operations.​

References:

-“Toyota’s Hino Motors pleads guilty to US emissions fraud, fined $1.6 billion” (https://www.reuters.com/business/autos-transportation/toyota-subsidiary-hino-motors-penalized-16-billion-over-emissions-fraud-scheme-2025-03-19)