Toyota Motor Corp (NYSE:TM) has reached an agreement that will see it pay the largest civil penalty in history, on breaching federal emissions reporting requirements. The Japanese automaker is to pay a $180 million fine for violations of the Clean Air Act.
Toyota Emission Violations
According to the U.S Attorney’s office in Manhattan, the giant automaker failed to report defects in how its cars controlled tailpipe emissions between 2005 and 2015. The automaker was also accused of violating standards designed to protect public health and the environment from harmful pollutants.
Immediate reports indicate Toyota managers and staff in japan knew about the violations, but failed to report let alone stops them. Likewise, the automaker went on to sell millions of cars that affected public health and the environment. In its defense, Toyota, through spokesman Eric Booth, insists it alerted authorities as soon as the lapses came to light.
Auto crackdown
Toyota joins a number of automakers who have fallen victim to tightened regulations and scrutiny on emissions. The world’s largest automaker Volkswagen was embroiled in an emissions-related scandal in 2017. The company was forced to plead guilty as it became clear it was trying to defraud the U.S government after rigging its diesel-powered cars to meet air quality standards.
Daimler has also found itself at crossroads with authorities in the U.S after it emerged it had programmed its cars to cheat on emission tests. Last year, the German automaker agreed to pay $2.2 billion to settle the charges.
Toyota and the other automakers are poised to be the subject of intense scrutiny with the incoming administration led by Joe Biden. The incoming administration has made it clear it means business in curbing carbon emission in support of the Paris agreement. In contrast, the Trump administration was a big reprieve for the auto industry after opting to roll back tailpipe emissions standards.
Toyota could find itself in trouble with the new administration following reports by the Environmental Protection Agency. The report alleges the company’s cars deliver some of the worst fuel efficiency in the industry that enhance pollution among passenger cars and trucks in the U.S.
