Hino Motors’ Engine Fraud Covers 560,000 vehicles

FAR EAST: JAPAN REPORT

Hino Motors has announced that the falsification of diesel engine emission values, which was previously announced in March, had been taking place since at least 2003 or earlier. The company had previously stated that the fraud began in the fall of 2016. In 2016, the company also revealed that it had falsely reported to the MLIT (Ministry of Land, Infrastructure, Transport, and Tourism) in response to its request for a fact-finding survey on exhaust gas and fuel efficiency tests.

Source: The Nikkei

PSR Analysis: Although I do not wish to make such negativity a theme, I cannot overlook this issue. The impact on the industry of the fraud at Hino, which has the top share of the medium- and heavy-duty truck sector in Japan, is significant. Isuzu has suspended shipments of four bus models that use Hino engines. Not limited to the automotive field, Tadano cranes, Kobelco hydraulic excavators, Hitachi Construction Machinery wheel loaders, and Kato rough terrain cranes have also been forced to suspend shipments after the problem came to light.

There have been countless cases of automobile manufacturers falsifying engine performance in the past. It is a fact that many manufacturers, both domestic and foreign, have engaged in this type of fraud over the years. Here are just a few examples:

• The Dieselgate incident, commonly known as Dieselgate by VW, reported in September 2015.https://en.wikipedia.org/wiki/Volkswagen_emissions_scandal
• Falsified fuel economy figures for mini cars by Mitsubishi and Nissan reported in April 2016
• Falsified fuel economy figures by Suzuki in 2016

This information has not yet been compiled into a report by investigators. They are in the process of being reported by media at this time. Hino has been issuing press releases and holding press conferences but has not yet issued any kind of report on the completion of the investigation.

At this point, the investigation is limited to vehicles for the domestic market and does not cover vehicles for the North American and Southeast Asian markets. In any case, it will not be easy to regain the trust that has been lost. The Ministry of Land, Infrastructure, Transport, and Tourism is furious and has imposed a rather severe punishment. The engine’s environmental performance, which they had been touting, was an illusion. It is very sad to see this issue, which seriously damages the reputation of “Made in Japan” built up by our predecessors. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research

Akihiro Komuro

Akihiro Komuro is based in Tokyo, Japan. He is responsible for collecting pertinent market data, executing special projects, analyzing forecast trends, attending trade shows across the Far East and Southeast Asia regions, and updating all OE Link™ data for Japan, South Korea, and the nations of Southeast Asia. After studying at Shukutoku University, Mr. Komuro gained extensive experience in the precision instrument and machinery markets and was actively engaged in international trading of marine engine parts. Mr. Komuro is a regular contributor to PSR’s monthly PowerTALK newsletter and provides forecast trend commentary covering the Far East and Southeast Asia regions for PSR’s Quarterly Update Bulletin. Mr. Komuro has worked with Power Systems Research since 2015.

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