By Investing.com– Toyota Motor (TYO:7203) shares fell in Japanese trade on Thursday after a unit of the automaker pled guilty and agreed to pay over $1.6 billion to settle an emissions fraud case with the U.S. Department of Justice.
Toyota’s shares fell 2.2% to 2,838.0 yen, compared to a 0.3% rise in the Nikkei 225.
The DOJ said in a statement on Wednesday that Hino Motors had reached a settlement with the U.S. government over allegations of falsifying emission testing and fuel consumption data, as well as the illicit smuggling of engines into the country.
Through the violations, Hino allegedly sold over 110,000 diesel engines in the U.S. between 2010 and 2022, most of which were installed in heavy-duty trucks.
Allegations against Hino were brought by the FBI, the EPA and the CBP.
A company-commissioned panel had found in 2022 that Hino falsified emissions data on engines dating back to as far as 2003.
While Toyota (NYSE:TM) has benefited from robust demand in the U.S. and China, its vehicle production has been hit by several high-profile scandals. Japanese authorities had raided the firm in June over allegations of faking safety certifications for its vehicles since at least the 1980s.
