carandbike logo

Toyota Settles U.S. Probe Into Delayed Emissions Defect Reports For $180 Million

Toyota will record $180 million in after-tax charges against earnings in the fiscal year ending March 31, 2021, for costs relating to the agreement.

Toyota will record $180 million in after-tax charges against earnings in the current fiscal year expand View Photos
Toyota will record $180 million in after-tax charges against earnings in the current fiscal year

Toyota Motor Corp settled a lengthy Justice Department civil probe into its delayed filing of emissions-related defect reports for $180 million, the government said on Thursday. Reuters first reported the expected settlement, which resolves the violations of the Clean Air Act. Toyota first disclosed in 2016 it was under investigation for the delayed reports to the Environmental Protection Agency (EPA). The Justice Department had not previously confirmed the investigation until Thursday's announcement by the U.S. Attorney's Office in Manhattan that the government had filed a civil lawsuit against the Japanese automaker. It simultaneously announced the settlement, which includes a consent decree that requires semi-annual compliance reports.

Toyota will record $180 million in after-tax charges against earnings in the fiscal year ending March 31, 2021, for costs relating to the agreement.

The government said the settlement resolved Toyota's "systematic, longstanding violations of Clean Air Act emission-related defect reporting requirements, which require manufacturers to report potential defects and recalls affecting vehicle components designed to control emissions."

faime1fg

Toyota first disclosed in 2016 it was under investigation for the delayed reports to the Environmental Protection Agency (EPA)

Acting U.S. Attorney Audrey Strauss in New York said: "Toyota shut its eyes to the noncompliance, failing to provide proper training, attention, and oversight to its Clean Air Act reporting obligations."

Newsbeep

She added that "Toyota's actions undermined EPA's self-disclosure system and likely led to delayed or avoided emission-related recalls, resulting in financial benefit to Toyota and excess emissions of air pollutants."

Toyota said in a statement the company nearly five years ago "identified and self-reported a process gap that resulted in a delay in the filing of certain non-public EPA reports for emissions-related defects in vehicles."

The automaker added that "while this reporting delay resulted in a negligible emissions impact, if any, we recognize that some of our reporting protocols fell short of our own high standards, and we are pleased to have resolved this matter."

509oa6fs

Toyota's $180 million fine is the largest civil penalty for violation of EPA's emission-reporting requirements

Over a 10-year period ending in 2015, Toyota "routinely filed emission defect reports to EPA materially late and, in many cases, failed to file such reports at all until a self-disclosure of non-compliance" in 2015, the Justice Department said in a court filing.

The government initially sought a substantially higher civil penalty from Toyota, sources briefed on the matter said.

The $180 million fine is the largest civil penalty for violation of EPA's emission-reporting requirements.

"Toyota failed to report mandatory information about potential defects in their cars to the EPA, keeping the agency in the dark and evading oversight. EPA considers this failure to be a serious violation of the Clean Air Act," said EPA Assistant Administrator Susan Bodine.

In recent years, the Justice Department has brought penalties in a number of auto emissions investigations, but unlike others including Volkswagen AG, Daimler AG and Fiat Chrysler Automobiles NV, the Toyota case has no allegations of emissions cheating.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

0 Comments

For the latest auto news and reviews, follow carandbike.com on Twitter, Facebook, and subscribe to our YouTube channel.

You might be interested in

Research on Toyota Cars

  • Toyota Land Cruiser Rear Back
    Toyota Land Cruiser Rear Back
  • Toyota Land Cruiser Bi Led Projector Headlamps With Led Clearance Lamps
    Toyota Land Cruiser Bi Led Projector Headlamps With Led Clearance Lamps
  • Toyota Land Cruiser Led Rear Combination Lamps
    Toyota Land Cruiser Led Rear Combination Lamps
  • Auto Headlamps
    Auto Headlamps
  • Electric Fold Orvms
    Electric Fold Orvms
  • Follow Me Home Headlamp
    Follow Me Home Headlamp
  • Toyota Etios Side View
    Toyota Etios Side View
  • Toyota Etios Rear Back
    Toyota Etios Rear Back
  • Toyota Etios Frond Side View
    Toyota Etios Frond Side View
  • Toyota Urban Cruiser
    Toyota Urban Cruiser
  • Toyota Urban Cruiser Alloy Wheels
    Toyota Urban Cruiser Alloy Wheels
  • Toyota Urban Cruiser Front View
    Toyota Urban Cruiser Front View
  • 2021 Toyota Fortuner Abs
    2021 Toyota Fortuner Abs
  • 2021 Toyota Fortuner Alloy Wheel
    2021 Toyota Fortuner Alloy Wheel
  • 2021 Toyota Fortuner Electronic Differential Lock
    2021 Toyota Fortuner Electronic Differential Lock
  • Toyota Etios Liva Dual Tone Color Front Side View
    Toyota Etios Liva Dual Tone Color Front Side View
  • Toyota Etios Liva Dual Tone Color Red
    Toyota Etios Liva Dual Tone Color Red
  • Toyota Etios Liva Dual Tone Color
    Toyota Etios Liva Dual Tone Color
  • 2020 Toyota Vellfire Front Grill
    2020 Toyota Vellfire Front Grill
  • 2020 Toyota Vellfire Headlight
    2020 Toyota Vellfire Headlight
  • 2020 Toyota Vellfire Side View
    2020 Toyota Vellfire Side View
  • Toyota Corolla Altis Side Front
    Toyota Corolla Altis Side Front
  • Black
    Black
  • Toyota Corolla Altis Front
    Toyota Corolla Altis Front
  • 2018 Toyota Land Cruiser
    2018 Toyota Land Cruiser
  • 2018 Toyota Land Cruiser Prado Front Proile
    2018 Toyota Land Cruiser Prado Front Proile
  • 2018 Toyota Land Cruiser Side View
    2018 Toyota Land Cruiser Side View
  • Toyota Yaris Front Profile
    Toyota Yaris Front Profile
  • Toyota Yaris Rear Profile
    Toyota Yaris Rear Profile
  • Toyota Yaris Front View
    Toyota Yaris Front View
Be the first one to comment
Thanks for the comments.