Hino Motors, a subsidiary of Toyota Motor Corp, has been charged with fraud in the U.S. District Court in Detroit for unlawfully selling over 105,000 heavy-duty diesel engines that did not meet emissions standards. The charges, filed by federal prosecutors, accuse Hino Motors of defrauding the U.S. and violating the Clean Air Act, with the company allegedly reaping approximately $1.087 billion from these sales. The engines in question were sold between 2010 and 2022, despite a company-commissioned panel revealing in 2022 that Hino had falsified emissions data on some engines going back to at least 2003.

The criminal case against Hino Motors is the latest in a series of scandals plaguing the automotive industry, involving vehicle emissions and safety. Notable past cases include General Motors Co. settling claims for faulty ignition switches, Fiat Chrysler Automobiles settling diesel emissions fraud claims, and Volkswagen AG's global diesel emissions scandal. The charges against Hino include conspiracy to defraud the U.S., violate the Clean Air Act, commit wire fraud, and smuggle goods into the U.S.

Prosecutors allege that Hino Motors engaged in a conspiracy starting no later than 2009, using illegal shortcuts, falsifying and altering data, skipping required testing, and concealing facts from U.S. federal and state regulators. Some employees reportedly made up or altered test results, a practice referred to as “licking the pencil.” A senior vice president, identified as “Witness A,” was aware of the wrongdoing and had warned executives about failures to report emission defects and certification issues between 2017 and 2019.

The case was filed in Detroit because Hino Motors Manufacturing U.S.A., a subsidiary of Hino, is headquartered in Novi, Michigan. Hino Motors Manufacturing assembles diesel trucks with engines manufactured and imported from overseas. There has been no immediate comment from a Hino Motors spokesperson on these charges.

This scandal raises significant concerns about environmental compliance and corporate accountability within the automotive industry, highlighting the ongoing challenges companies face in adhering to stringent emissions regulations.