Toyota's (TM.US) subsidiary Hino Motors has reached a $1.6 billion settlement agreement with US authorities on emission cheating.

Toyota Motor Corp. Sponsored ADR (TM.US) subsidiary Hino Motors reached a $1.6 billion settlement with US authorities for falsifying engine emissions testing data and illegally selling over 105,000 car engines. Hino Motors admitted to submitting false engine certification approval applications and carbon dioxide emissions testing data, resulting in the import and sale of over 105,000 non-compliant engines from 2010 to 2022. Hino Motors agreed to plead guilty to resolve the US Department of Justice's criminal investigation and pay a total of $521.76 million in criminal fines. The company also agreed to a $1.087 billion fine judgment against them. Hino Motors CEO Satoshi Ogiso stated, "We deeply apologize for the inconvenience caused to our customers and stakeholders. In order to prevent such issues from happening again, we have implemented reforms across the company, including meaningful improvements to our internal culture, oversight, and compliance practices." Additionally, Hino Motors noted that the settlement agreement will not affect the production and sale of their new trucks in the US, which are equipped with third-party manufactured engines.