Hino Motors, a part of Toyota, has been hit with a massive $1.6 billion penalty over emissions fraud allegations.

The big picture: This case involves false data on engine emissions that allowed Hino to import and sell over 110,000 diesel engines in the U.S. from 2010 to 2022.

• Hino's actions led to a significant voiding of their engine approvals by the Environmental Protection Agency (EPA).
• The penalties include a criminal fine of $521.76 million and a civil penalty of $525 million.

What happened: Hino is accused of submitting false data, which enabled them to circumvent regulators and sell non-compliant engines mainly used in heavy-duty trucks.

Why it matters: Hino will also face a five-year probation period during which they cannot import their diesel engines to the U.S., according to an EPA press release.

What's next: As part of the resolution, Hino has pledged to enhance its compliance systems to prevent future occurrences of such misconduct.

Completion of this resolution allows Hino to move forward without hindering new truck sales in the U.S., where they plan to use engines made by third parties.