Hino Motors posts big losses following emissions scandal

Tern is a new brand of Class 8 trucks, developed by Hexagon Purus and Hino (Photo: Hexagon Purus)

A series of Japanese news outlets have reported that Hino Motors posted a net loss of ¥219.5 billion ($1.42 billion) for the year through September 2024.

The loss is said to be linked to the falsification of engine data in 2022 covering the A05C medium-duty and A09C and E13C heavy-duty engines.

Engine emissions results were allegedly manipulated using non-stock exhaust systems to deliver the required test results.

Much of the revenue loss is related to payments to authorities in the United States to settle charges related to the fraud.

A portion of the loss could also be attributed to the planned closing of China-based subsidiary Shanghai Hino Engine. The diesel engine division was closed due to the rising prevalence of electric drivetrains in the China commercial vehicle market.

In a move away from internal combustion, Hino has been looking to develop a range of electric commercial vehicles. This has included a tech sharing agreement with VW’s Traton Group signed in 2018.

At ACT Expo earlier in 2024, Hino launched Tern, a dedicated zero-emission truck range tailored for the US market. Developed in partnership with Hexagon Purus, the first model to be launched was the Class 8 RC8 model.

The loss comes after Hino posted a net profit of ¥76 billion (approx. $500 million) through Jan-Sept 2023.