The latest chapter, for now, concerns Hino Motors, Toyota’s subsidiary operating in the production of commercial vehicles and diesel engines. In January, in fact, the Japanese company reached a $1.6 billion settlement with U.S. authorities to end the legal case related to the sale of engines that did not meet emission standards. Hino had been accused of falsifying certification data and manipulating tests. In detail, the Japanese company will close its pending charges with a $521.76 million fine in addition to $442.5 million in civil penalties and $236.5 million in compensation to the State of California. The company must also implement a $155 million compliance initiative and environmental mitigation program while committing, of course, to replace defective engines in heavy trucks.
Volkswagen pays the largest part
The case involving the Japanese automaker’s subsidiary is just the latest episode in the long-running Dieselgate, the scandal that includes the lawsuits over alleged violations of vehicle environmental impact standards committed by automakers over the years. A saga that began in 2015 with the notorious Volkswagen case and has cost the industry tens of billions of dollars to date. It is difficult, if not impossible, to reach a clear estimate. But the magnitude of the numbers is quite clear.
The German manufacturer, of course, has paid the highest price by far. As of October 2019, the total fines levied and settled as well as compensation awarded by Volkswagen already amounted to $25 billion, a figure heavily impacted in particular by the $14.7 billion settlement with the U.S. Environmental Protection Agency (EPA). Added to this were additional cost items such as the recall of cars from the market and the impact on brand value. Subsequent analyses have raised the total bill to much higher proportions: from nearly $35 billion to about $38 billion or, for comparison, about 80 percent of the company’s current market cap.
Daimler and FCA
What about the others? The bill is definitely lower but not irrelevant. In August 2020 Daimler reached a $1.5 billion settlement with U.S. authorities to end litigation with the EPA the California Air Resources Board (CARB). The agreement involves an additional $700 million in legal fees for a total bill of $2.2 billion.
In 2022, FCA, now part of the Stellantis group, agreed to a nearly $300 million fine to settle its case with the U.S. Department of Justice that accused it of manipulating emissions tests on more than 100,000 Jeep Grand Cherokee and Ram 1500 diesel vehicles. Previously, FCA had paid $311 million in civil penalties and more than $180 million in settlements for consumers involved in a class action lawsuit. Finally, a dispute with CARB was settled in late 2024 for a sum of about $4.2 million.
