Commercial Japan Partnership Technologies Corporation (CJPT) is expelling Hino Motors, Ltd. (Hino) in light of Hino’s misconduct concerning certification testing. An on-site inspection conducted by Japan’s Ministry of Land, Infrastructure, Transport and Tourism found that Hino committed additional wrongdoings related to applications for engine emissions certification, in addition to the previously announced wrongdoings announced earlier this year.

On 4 March, the company reported that technical verification revealed that the actual fuel efficiency performance of the N04C compact engine (with a urea selective catalytic reduction system) mounted on the Toyota Coaster did not meet the values specified.

Most recently, the following facts were found in the emission performance deterioration endurance tests conducted by Hino on all of the company’s vehicle engine models subject to the 2016 emission regulations in Japan (Post-Post New Long Term regulations):

• At some measurement points, the number of emission gas measurements was insufficient when two or more measurements were required.

• The deterioration correction values were calculated based on data from a single measurement, whereas these figures need to be calculated based on data of multiple measurements.

The engine models subject to the wrongdoings identified this most recent time include the 4-liter diesel engine model N04C (with HC-SCR system). This engine model is used in the Toyota 2-ton “Dyna” and “Toyoace” (Cargo, Dump), which are OEM-supplied vehicle models by Hino.

Following the 4 March announcement, on 2 August of this year, Hino already announced extensive additional wrongdoings as an “overview of the misconduct” resulting from a full investigation by the Special Investigation Committee and the company.

Since its establishment in April 2021, CJPT has been working in the field with its partners to accelerate the spread of CASE, thereby aiming to contribute in achieving a carbon neutral society and reducing the burden on drivers and workers. Akio Toyoda, President of Toyota Motor Corporation (Toyota), suggested that the misconduct committed by Hino is incompatible with CJPT’s aspirations and goals and that the continued inclusion of Hino in activities will not gain the understanding of its customers and the public.

With this suggestion taken into consideration, the decision was made after discussion within CJPT.

Specifically, Hino will be excluded from all agreements, including the joint planning agreement, and Hino’s equity stake (10%) in CJPT will be transferred to Toyota. In the projects on which CJPT is currently working, such as the previously announced social implementation in Fukushima and Tokyo, Hino will play a minimal role to not cause inconvenience to CJPT’s customers.

As the parent company and a shareholder of Hino, we are extremely disappointed with the company’s misconduct in relation to the certification testing, which has greatly undermined the trust of our customers and all other stakeholders. Hino has committed misconduct in engine certification for a long period of time, and the company is in a situation where it is not to be recognized as one of the 5.5 million individuals in the Japanese automotive industry.

CJPT is a project to build the future together, based on Japan’s CASE technology. As of now, we believe that Hino’s participation will cause inconvenience to stakeholders, and we have decided that it is appropriate to expel Hino from CJPT. This conclusion was reached after discussions with the companies involved. We will continue to work with our partners on the project to solve the issues facing the transportation industry and contribute to achieving a carbon-neutral society.

—Akio Toyoda, President of Toyota Motor Corporation