A subsidiary of the global vehicle brand, Toyota has pleaded guilty to an emissions, sales and import fraud scheme allegedly in the $1.6 billion mark.
Hino Motors, Ltd. (Hino Motors), Hino Motors Manufacturing U.S.A., Inc., and Hino Motors Sales U.S.A., Inc. (collectively, Hino) are under the spotlight of government regulators.
This resulted in a collection of criminal and multiple civil resolutions according to a court action brought forward by the State of California, the U.S. Justice Department, the Environmental Protection Agency (EPA), the FBI, Customs and Border Protection (CBP), the Department of Transportation’s Office of Inspector General (DOT-OIG) and National Highway Traffic Safety Administration (NHTSA).
Hino allegedly submitted “false and fraudulent engine emission testing and fuel consumption data to regulators and the illicit smuggling of engines into the United States.”
“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,” said Attorney General Merrick B. Garland. “No company is above the law.”
Toyota subsidiary faces multiple criminal and civil allegations
The U.S. District Court for the Eastern District of Michigan heard the allegations against Hino and will seal the automotive company’s fate.
“Corporate crimes such as these endanger the health and well-being of innocent Americans, as well as the environment in which we all live,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan.”
Hino’s alleged use of fake submissions and data and the smuggling of engines into the U.S. gave the company an advantage in securing approvals to import and sell a reported 110,000 diesel engines used in heavy-duty vehicles in the United States from 2010 to 2022.
“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 vehicle seller has consented to a global agreement in pleading guilty that requires the company to pay a criminal fine of $521.76 million and serve a five-year term of probation. In the probation, which is subject to court approval, the company will be prohibited from importing or selling diesel engines. The company will also forfeit $1.087 billion as part of the agreement.
The civil resolutions comprise multiple parts that total civil penalties of $525 million for environmental, customs, and fuel economy claims by the federal government and the State of California.
Image: Pexels.
