Photo/Illutration Satoshi Ogiso, president of Hino Motors Ltd., apologizes at the start of an Oct. 7 news conference. (Jin Nishioka)

Hino Motors Ltd. on Oct. 7 announced wide-ranging disciplinary measures over a fraudulent emission data reporting scandal that goes back nearly 20 years and said it would demand the return of remuneration from past executives.

The truck manufacturer has established that the falsification of exhaust emission and fuel economy figures started from at least 2003.

That led to the announcement on Oct. 7 that not only would four current executives resign with immediate effect, but that 11 former executives would be asked to voluntarily return their remuneration to take responsibility for allowing the problem to fester for so long.

Among the 11 former executives are Yoshio Shimo, who stepped down as company chairman in June. Six once served as representative directors, while the other five held managerial positions with oversight on the company’s organizational culture.

Satoshi Ogiso, who became president of Hino Motors in 2021 after being transferred from Toyota Motor Corp., Hino’s parent company, will have his monthly remuneration cut by 50 percent for six months.

Another six executives, including outside directors, will have their pay cut by between 20 and 30 percent for three months.

At the Oct. 7 news conference to announce the measures, Ogiso was asked if he intended to resign.

“I will remain in a leadership role in order to reduce the trouble caused stakeholders,” he said.

The company submitted its punitive action plan to the transport ministry on the same day to show its determination to prevent a recurrence.

One step involves expanding the certifying section that will be made independent from the development section. The company also plans to tackle problems with its corporate culture described by some as being steeped in power harassment.

Transport minister Tetsuo Saito said in response to receiving the notification from Ogiso, “I hope the company will move forward with revisions by cutting ties with the improper practices in place for many years.”

But one high-ranking ministry official said, “Since it is a large organization, it is unlikely that change will happen overnight even after it is told to get its house in order.”

The role of Toyota in helping Hino revamp its corporate structure will also be a focus of attention. Toyota made Hino a subsidiary in 2001 and a number of its executives have served as the company president.

Toyota issued a statement on Oct. 7 that pledged to cooperate through whatever support it could provide Hino.

(This article was written by Junichi Kamiyama, Takeshi Narabe and Eishi Kado.)

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