Toyota Material Handling agrees to settlement discussions in emissions lawsuit

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🗞️ Driving the news: Toyota Material Handling and other Toyota-affiliated entities have agreed to enter settlement discussions in a class-action lawsuit over allegations of emissions test manipulation in forklift engines sold in the U.S.
• The case, filed in federal court in San Francisco, now involves 22 businesses across 17 states and stems from internal findings released in a 2024 report by Toyota Industries Corp. (TICO) on emissions  irregularities

🔭 The context: The lawsuit alleges that Toyota (see sustainability performance) affiliates falsified emissions data and manipulated testing procedures to mislead customers about forklift compliance with U.S. emissions standards
• Though the misconduct initially came to light in Japan, plaintiffs argue it originated from a 2020 inquiry by U.S. regulators
• The case echoes broader scrutiny of emissions compliance in the automotive and machinery sectors, reminiscent of past dieselgate scandals

🌍 Why it matters for the planet: Allegations of emissions cheating undermine regulatory trust and threaten to delay emissions reduction efforts in industrial sectors
• Forklifts and other non-road machinery contribute significantly to urban air pollution and greenhouse gas emissions
• Ensuring transparent compliance with environmental standards is essential to decarbonising industrial logistics and protecting public health

⏭️ What's next: The parties have selected a mediator and a judge has vacated a motion to dismiss, allowing settlement talks to proceed
• A case management conference is scheduled for June 4
• This case could lead to financial penalties, operational reforms, or further regulatory actions against Toyota affiliates in the U.S. or abroad

💬 One quote: “The misconduct first surfaced in the United States, not Japan, based on U.S. regulators’ investigations into misconduct that affected vehicles sold in the U.S. market.  Amended complaint in the class-action lawsuit

📈 One stat: The lawsuit currently involves 22 plaintiffs from 17 U.S. states, underscoring the potential nationwide scope of the alleged emissions violations

See on illuminem's Data Hub™ the sustainability performance of Toyota and its peers Mitsubishi, and Nissan

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