Hino Motors Ltd., a Toyota subsidiary, has been sentenced to pay over $1.6 billion in penalties for a multi-year emissions fraud scheme, marking one of the largest corporate environmental crime settlements in U.S. history.
The U.S. Environmental Protection Agency (EPA) and the Department of Justice (DOJ) announced the sentencing on Wednesday after U.S. District Judge Mark A. Goldsmith in the Eastern District of Michigan accepted Hino Motors’ guilty plea to a criminal conspiracy charge.
The court imposed:
- A $521.76 million criminal fine
- A $1.087 billion forfeiture money judgment
- A five-year probation period, during which Hino is banned from importing diesel engines into the U.S.
- A requirement for a comprehensive compliance and ethics program
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According to court records, between 2010 and 2019, Hino engineers manipulated emissions data to gain engine certification approvals under the federal Clean Air Act. The company:
- Falsified emissions test data
- Altered fuel consumption values
- Conducted improper tests
- Used undisclosed software functions to evade emissions controls
As a result, Hino illegally imported and sold over 105,000 non-compliant diesel engines between 2010 and 2022, primarily for use in heavy-duty trucks sold nationwide.
EPA Acting Assistant Administrator Jeffrey Hall called the sentencing a major victory for environmental enforcement, condemning Hino’s deliberate deception.
“Hino falsely certified compliance with the Clean Air Act so that it could profit off Americans by sending illegal, polluting engines into the United States,” Hall said.
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DOJ officials emphasized the company’s unfair competitive advantage over law-abiding businesses.
“Hino unlawfully imported over 105,000 engines that did not comply with U.S. emissions standards and lied about what it was doing,” said Acting Assistant Attorney General Adam Gustafson. “Hino’s criminal conduct generated over $1 billion in gross proceeds.”
Acting U.S. Attorney Julie Beck vowed continued enforcement against corporations that deceive regulators and consumers.
The FBI’s Criminal Investigative Division and the EPA’s Criminal Investigation Division led the probe, with FBI Assistant Director James C. Barnacle, Jr. warning that fraud will not go unpunished.
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“Hino Motors orchestrated a deliberate and years-long fraud scheme that put profit over principle,” Barnacle said. “It doesn’t matter how complex the scheme is—the FBI is committed to holding individuals and organizations responsible for their actions.”
This case is the latest in a series of high-profile emissions scandals, following similar fraud cases against Volkswagen and Fiat Chrysler Automobiles. With increased scrutiny on corporate environmental compliance, experts say the ruling serves as a warning to other manufacturers engaging in fraudulent emissions practices.
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