Toyota Facing Class Action Lawsuit Over Forklift Engine Emissions Cheating Scandal [UPDATE]

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The American subsidiaries of Toyota Industries Corporation (TICO) face a proposed class action lawsuit over an alleged international scheme to misrepresent the true emissions levels and output performance of certain diesel and gasoline forklift engines. 

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At the center of the 75-page Toyota lawsuit is the automaker’s admission earlier this year to “yet another massive [emissions] cheating scandal,” this time concerning collision, air-bag, rear-seat damage and engine power certification tests for seven vehicle models, three of which were still in production. At a high level, the apparent forklift engine scheme “had the intent and effect of misrepresenting the vehicles’ true emissions levels as well as their ‘output,’” e.g., torque and power, the suit summarizes. 

“The net effect of this deceptive scheme is that the Class Vehicles emitted more pollutants than represented, allowed by law, or reasonably expected,” the case alleges, stressing that the alleged conduct rendered the Toyota forklifts at issue illegal to import or sell.

In March 2023, TICO announced a suspension of domestic shipment in Japan due to possible regulatory violations related to certifications for forklift engines, the case relays. In its announcement, TICO conceded that two diesel engine models and one gasoline engine model for Toyota forklifts exceeded Japanese emissions regulations, the filing says. 

According to the complaint, the results of an inquiry by a special investigation committee convened by Toyota, released in late January 2024, revealed the scope of the apparent cheating scandal to be even more widespread, as the SIC identified several other current and formerly used forklift engines to be non-compliant. 

“In addition to the three forklift engines already implicated, the SIC investigation identified many more: one more current forklift engine (certification model year 2014 1FS), three formerly used forklift engines (certification model year 2007 1DZ, 4Y, and 1FZ), and a current and former engine used in construction machinery like excavators (certification model years 2016 and 2020 Construction 1KD).” 

Per the filing, the alleged Toyota forklift emissions scheme involved the fabrication of important emissions numbers for certification testing, modification of engine control unit software in test engines, replacement of parts during emissions testing so as to generate incorrect real-world emissions values, and employment of different engines for testing than those that were equipped in in-production vehicles.

The case additionally details Toyota’s alleged cheating on output tests designed to measure torque, horsepower and other key performance metrics, accomplished by engineers who allegedly modified fuel injection amounts by tweaking engine control unit software parameter values. 

The proposed class action emphasizes that the alleged scheme, despite Toyota’s admissions to misconduct in Japan, originated in the United States.

“To be clear, 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.” 

The Toyota forklift lawsuit looks to cover all individuals and entities who bought or leased in the United States a 2014 1KD, 2014 1ZS, 2014 1FS, 2009 4Y, 2007 4Y, 2007 1DZ, 2007 1FZ, 2020 1KD for construction machinery, and/or 2016 1KD for construction machinery.

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