Toyota subsidiary to pay $1.6B to settle EPA emissions fraud case

By Mike Lee | 03/20/2025 01:36 PM EDT

The massive fine resolves claims that the company falsified results and used improper tests on its diesel engines to duck federal and state emissions requirements.

A Toyota dealership in Oakland, California.

A Toyota dealership in Oakland, California. Justin Sullivan/Getty Images

A subsidiary of Toyota has pleaded guilty to criminal charges and will pay $1.6 billion to settle an emissions fraud case brought by EPA.

The company, Hino Motors, also agreed to stop importing engines for five years as part of the deal, which was first announced in January and approved Wednesday by a federal judge in the Eastern District of Michigan.

Hino will pay a $521.8 million fine and another $1.08 billion forfeiture. It’s one of the largest financial penalties in EPA history.

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“Today’s plea and sentencing demonstrates that companies who intentionally evade our nation’s environmental laws, including by fabricating data to feign compliance with those laws, deserve punishment and will be held criminally accountable,” Jeffrey Hall, acting assistant administrator for EPA’s Office of Enforcement and Compliance Assurance, said in a statement.

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