In A U.S. Lawsuit, Hino Motors And Toyota Are Accused Of Misconduct!

It is not so clear that the plaintiffs seek to recover, but they have mentioned the aggregate amount that exceeds the threshold of USD 5 Million for the court jurisdiction to have.

Toyota motors and its child company Hino Motors Ltd (A Japanese vehicle maker), has been accused of misconduct that happened a few years back. According to Hino, legal action is taken and brought within the borders of the United States.

In A U.S. Lawsuit, Hino Motors And Toyota Are Accused Of Misconduct

Customers who leased or acquired 2004-2001 Hino Trucks in the U.S. filed the case, the business said. There is not much information on the amount that the plaintiffs seek to recover, but the total summation of the amount is more than USD 5 Million.

In A U.S. Lawsuit, Hino Motors And Toyota Are Accused Of Misconduct

The Investigation report by the company-commissioned panel said that Hino motors had misled the customers by writing a falsified emission rate of the vehicles on various engines manufactured around 2003 or even more than a decade earlier. 

Key Takeaways

  • It has been found that it falsified data related to fuel engine emissions and performance for nearly 20 years. 
  • With the ongoing demand for the models, the company did not consider doing proper due diligence before launching them to the market.
  •  It would be quite difficult for the company to rebuild its credibility and management. 

Hino responded by blaming the management’s failure and an inward-looking company to engage the employees. Which prioritized industrial goals and numerical targets over the traditional procedure.

Further, the panel had told that they have enquired all the midsize to large vehicle engines and found that this issue is with the domestic markets but not overseas countries.

According to Reuters, Hino President Ogiso apologized for their action and confirmed that the Toyota president, Akio Toyoda, had sent him a letter saying Hino’s misconduct had broken the trust of various stakeholders. Also, soon the Japanese transportation Ministry would conduct an independent level of instigation on the site of Hino.

Earlier, Hino’s President had said that it would unveil the emissions cheating five years ago in 2016. Japan’s Ministry of Transportation revoked the certifications of such engines in March. Currently, Hino has disclosed a figure of 47,000 vehicles which is more than the 20,900 that they disclosed earlier. Such big numbers would cause more recalls for Hino Motors. 

Hino Motors announced in March 2022 that they tested four engines in 2016. Eight truck and bus models have engines that don’t meet fuel economy and pollution claims. 

The fraud by Hino Motors had led to a total loss worth USD 650 Million in the previous Fiscal year. This loss has put a big deficit in the history of the company’s performance. Hino Motors hasn’t disclosed its earnings prediction for this fiscal year due to the unpredictability of model restarts.

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