A Toyota division that manufactures trucks will pay more than $1.6 billion and plead guilty to violations related to the submission of false and fraudulent engine emission testing and fuel consumption data to regulators and the illicit smuggling of engines into the United States.

Toyota's (NYSE:TM) truck-making unit Hino Motors (OTCPK:HINOY) has reached a $1.6B settlement with U.S. authorities over falsifying engine emission testing data and unlawfully selling more than 105,000 vehicle engines.

Uh oh, Toyota is in hot water. Toyota subsidiary Hino Motors was caught committing emissions fraud and is getting more than just a slap on the wrist. It’s facing a $1.6 billion settlement and has to take action to meet rising emission standards.