'Fuel Efficiency Manipulation' Japanese Commercial Vehicle Hino Banned from Producing Related Vehicles
[Asia Economy Reporter Cho Hyun-ui] Hino Motors, a Toyota subsidiary and Japan's top commercial vehicle manufacturer, has been found to have manipulated emissions and fuel efficiency, leading to a ban on the production of vehicles equipped with the related engines.
On the 30th, Asahi Shimbun reported that "the Ministry of Land, Infrastructure, Transport and Tourism canceled the 'type approval' for eight vehicle models using Hino engines involved in the data manipulation, in accordance with the Road Transport Vehicle Act."
Type approval is a government authorization that ensures vehicle performance and allows mass production; this is the first case since the system was implemented in 1951.
The problematic engines were installed in eight vehicle models, including Toyota buses, Hino trucks, and Isuzu buses. Production of these vehicles has been halted since the 4th of this month.
Asahi Shimbun stated, "It will take several months to regain type approval, so the production suspension may be prolonged."
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Following the Ministry of Land, Infrastructure, Transport and Tourism's directive, Hino plans to recall vehicles equipped with the affected engines. Due to recall costs and other factors, Hino's expected profit and loss for fiscal year 2021 (April 2021 to March 2022) has shifted from a 15 billion yen surplus to a 54 billion yen (approximately 540 billion KRW) deficit.
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