Hino Motors has agreed to a $1.6 billion settlement with the United States over its role in an emissions scandal, marking another significant chapter in the ongoing dieselgate saga that has embroiled several automotive giants. The settlement follows Hino's admission of guilt for deceiving US regulators about the emissions produced by its diesel engines. This development comes after a Detroit court charged Hino with fraud for selling 105,000 illegal engines in the US from 2010 to 2022.
The scandal mirrors similar issues faced by brands under the Volkswagen umbrella, including Audi, Porsche, Seat, Skoda, and Volkswagen itself. The US Environmental Protection Agency labeled Hino's actions as a "criminal conspiracy" that allowed the company to import and sell non-compliant engines. In response, Hino will recall infringing heavy-duty trucks and replace marine and locomotive engines across the country to mitigate excess air emissions.
"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.
In addition to the financial settlement, Hino has committed to implementing a compliance and ethics plan over the next five years. This plan is designed to ensure adherence to environmental standards and prevent future misconduct. The company also faces a five-year ban on importing its diesel engines into the United States, pending court approval of the settlement.
Hino's chief executive and president, Satoshi Ogiso, expressed remorse for the company's actions.
"We take this resolution seriously and will ensure that the field fix, the Environmental Mitigation Program, and further strengthening of our compliance system… are implemented," Ogiso stated.
He further offered an apology to those affected by the scandal.
"We deeply apologize for the inconvenience caused to our customers and stakeholders," Ogiso added.
The case against Hino underscores the widespread nature of diesel emissions scandals that have plagued the automotive industry. Volkswagen alone has expended over 30 billion euros in fines, recalls, and compensation related to its involvement.
In October, Hino reported an extraordinary loss of 230 billion yen in its second quarter financial results, partially attributable to this scandal's financial repercussions. As part of its resolution strategy, Hino will recall specific vehicles and engines to comply with environmental standards.