Hino and its American subsidiaries have revealed they have achieved a “comprehensive settlement” with US Federal and California state authorities to resolve both the criminal and civil investigations into the company’s falsified engine emissions testing and fuel consumption data , which affected more than 110,000 diesel engines sold in the USA
The resolution totalled more than $US 1.6 billion, and includes fines, penalties, recalls, and environmental mitigation projects, and comes after it admitted to a multi-year scheme to submit fraudulent certification data.
The issues allegedly dated back to 2010, when Hino submitted false or altered emissions and fuel data for heavy-duty diesel engines. Between 2010 and 2022, the company imported and sold more than 105,000 non-compliant engines in the U.S.A, primarily installed in Hino’s heavy-duty trucks.
the company voluntarily disclosed the issues to U.S. authorities in 2019 and fully cooperated with investigations by the Department of Justice, Environmental Protection Agency, National Highway Traffic Safety Administration, and Customs and Border Protection.
As part of the criminal resolution, Hino pleaded guilty to a conspiracy to mislead regulators and agreed to pay $US 521.76 million in fines, serve a five-year probation term, and implement a comprehensive compliance and ethics program.
The plea also includes a forfeiture judgment of $US 1.087 billion, partially offset by future civil settlement payments.
Hino must pay $US 525 million to federal and California authorities as part of civil resolutions.
The settlement includes a $US155 million environmental mitigation program to counteract excess emissions, a $US144.2 million recall program for engines from model years 2017–2019, $US123.6 million designated for California mitigation projects, and $US30.3 million to settle False Claims Act claims in the state.
These mitigation efforts are projected to reduce nitrogen oxides by more than 41,900 tonnes, particulate matter by 376 tonnes, carbon dioxide by 6,199 tonnes, and nitrous oxide by 135 tonnes.
Despite the settlement, Hino said the legacy issues do not affect vehicle driving performance or safety.
Hino said it has overhauled its governance and compliance systems under its “Three Reforms” program.
The changes it has put oil place, include the appointment of a compliance and risk leadership team, the separation of engine development and certification functions, enhanced employee reporting structures, and mandatory ethics and technical compliance training.
Hino said these measures, agreed upon with federal authorities, are designed to prevent future violations and will be applied globally across its operations.
“This resolution is a significant milestone toward resolving legacy issues that we have worked hard to ensure are no longer a part of Hino’s operations or culture,” said the president and CEO of Hino, Satoshi Ogiso.
Ogiso is soon to leave Hino to join the new Fuso Hino joint venture Archeon, as chief technical officer
The settlement represents one of the largest combined civil and criminal resolutions in U.S. environmental enforcement history, reflecting the scale of Hino’s misconduct and the government’s coordinated efforts to hold the company accountable.
