Hino Motors, Ltd. announced that it has reached a major settlement with U.S. federal and California government authorities related to long‑standing engine emissions certification testing and performance issues involving certain legacy engines sold in the United States. The agreement resolves all remaining criminal and civil investigations connected to these issues.

Under the criminal resolution, Hino will enter a guilty plea and pay $521.76 million in criminal penalties, an amount significantly reduced due to what the U.S. Department of Justice described as the company’s “exemplary” cooperation. The company also agreed to forfeit proceeds from the misconduct, though it expects those obligations to be satisfied through credits linked to civil resolution payments. 

To settle civil claims, Hino and its U.S. subsidiaries will pay $442.5 million to U.S. federal agencies including the DOJ, EPA, NHTSA, and CBP, along with an additional $236.5 million to California authorities such as the California Air Resources Board and the California Attorney General’s Office. The company will also implement a field fix for affected Model Year 2017–2019 J08E and J05E engines and undertake an Environmental Mitigation Program to offset excess emissions. 

Hino emphasised that the legacy issues do not affect vehicle safety or drivability, and all existing Hino vehicles remain legal to own, operate, service, and repair in the U.S. market. The resolution will also not impact manufacturing and sales of new Hino trucks in the United States, which now use third‑party engines.

The company has undertaken extensive internal reforms since first disclosing the issues in 2019, launching governance, compliance, cultural, and structural overhauls aimed at preventing recurrence. Reforms include new compliance leadership roles, strengthened oversight systems, organizational restructuring, improved regulatory management, and a company‑wide cultural renewal guided by the “HINO Way” and its “Three Reforms” initiative.

Hino previously recorded an extraordinary loss of 230 billion yen (approximately $1.54 billion) in October 2024 to account for anticipated settlement costs, including penalties, remediation, and field fixes. The company is currently assessing the financial impact of the finalized settlement amount and will issue updates as needed.

Hino President and CEO Satoshi Ogiso called the resolution “a significant milestone” and reaffirmed the company’s commitment to compliance, transparency, and regaining trust as it moves forward.