Toyota Slapped With $180 Million Civil Penalty for Its Clean Air Act Emission Violations

The Environmental Protection Agency (EPA) has recently announced that a settlement has been agreed upon for a lawsuit filed because of the longstanding violations Toyota has incurred against the Clean Air Act emission-related defect reporting requirements.

It requires manufacturers like Toyota to report any potential defects and recalls that may affect vehicle components made primarily to control emissions.

Toyota is required to pay $180 million in penalties and the imposition of injunctive relief. It is also the biggest penalty slapped for violating EPA’s emission-reporting requirements.

The injunctive provisions need Toyota to be compliant and duly report emission-related defects on time to the EPA.

Toyota is the second-largest automobile maker of Volkswagen and had a reputation for clean technology because of its best-selling Prius gasoline-electric hybrid passenger cars.

Toyota was cited for having violated regulations for a decade, hindering the EPA from the best possible compliance tool to make sure vehicles on the road will be compliant with federal emissions standards.

They did not also properly train, attend, or oversee its obligations to Clean Air Act reporting.

Although in 2019, as it tried supporting the Trump administration and its decision to roll back tailpipe emissions standards along with its introduction of electric vehicles, it made it a target for environmental groups.

Toyota’s current vehicle lineup focuses heavily on gas-guzzling sports-utility vehicles (SUVs), which costs more but has a higher profit margin.

But based on a report from the Environmental Protection Agency (EPA), Toyota has had some of the worst fuel efficiency rates in the industry and is slowly worsening as per mileage and pollution from cars and trucks in the country for the very first time in five years.

Toyota did claim it already addressed the problem. They reportedly identified a gap in the process that created the delay in filing non-public EPA reports for defects related to emissions. Within a few months, they have sent in all relevant delayed filings and put in much better reporting and compliance processes.

Toyota has no plans to challenge the fine.

As the Biden administration is set to implement a much stricter tailpipe emission rule, Toyota, along with other car manufacturers, did indicate that they are committed to working with the government.

Editor’s note on Toyota EPA Settlement:

This news feature is created to keep you updated of the latest Toyota EPA settlement that was agreed upon by parties involved in the lawsuit filed against Toyota over their defective Clean Air Act Emission. 

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