The car industry touches nearly every town and driveway, but corporate conduct behind the badge matters just as much as engineering. Consumers, regulators and journalists have uncovered patterns of behavior that affect safety, worker rights and the environment, so it’s worth looking beyond styling and specs.
There are 11 Least Ethical Car Companies, ranging from BMW to Volkswagen, chosen for repeated questionable practices and documented sanctions. For each company you’ll find below Headquarters country,Main unethical issues,Documented penalties (USD) & year to make comparisons quick and transparent—you’ll find below those details for every entry.
How were companies judged to be among the least ethical?
The list is based on documented incidents: regulatory fines, confirmed emissions or safety violations, labor and human-rights findings, and repeated legal actions reported by reputable news outlets and official agencies. Patterns of repeat offenses and the scale of penalties weighed more heavily than single isolated claims.
Can I trust the documented penalties and their dates?
Amounts and years come from public records, court filings and regulator announcements converted to USD when needed; they’re intended as a snapshot, not a live ledger. For recent developments or appeals, check the primary source links provided in the entries below.
Least Ethical Car Companies
| Company | Headquarters country | Main unethical issues | Documented penalties (USD) & year |
|---|---|---|---|
| Volkswagen | Germany | Deliberate emissions cheating (“Dieselgate”) affecting millions of vehicles globally. | Over $33,000,000,000 in fines/settlements (2015-present) |
| General Motors | USA | Concealing a deadly ignition switch defect for over a decade, causing numerous deaths. | ~$2,000,000,000 in fines/settlements (2015) |
| Toyota | Japan | Misleading the public and regulators about a deadly unintended acceleration defect. | ~$1,200,000,000 criminal penalty (2014) |
| Fiat Chrysler (Stellantis) | Netherlands | Using illegal “defeat devices” to cheat on diesel emissions tests. | ~$1,100,000,000 in fines/settlements (2019, 2022) |
| Daimler (Mercedes-Benz) | Germany | Using illegal software to cheat on diesel emissions tests. | ~$2,200,000,000 in fines/settlements (2020) |
| Hyundai/Kia | South Korea | Inflating fuel economy ratings and delaying recalls for serious engine fire risks. | Over $560,000,000 in penalties (2014, 2020) |
| Ford | USA | Misrepresenting vehicle fuel economy, emissions, and payload capacity. | ~$365,000,000 settlement (2022) |
| Tesla | USA | Misleading marketing of “Autopilot” capabilities; documented labor and race discrimination issues. | ~$137,000,000 racial harassment verdict (2021) |
| BMW | Germany | Supply chain links to forced labor; misleading sales reporting. | ~$18,000,000 SEC penalty (2020) |
| Honda | Japan | Failure to report over 1,700 death and injury claims to safety regulators. | ~$70,000,000 civil penalty (2015) |
| Nissan | Japan | Widespread executive financial misconduct; falsifying emissions and fuel economy data. | ~$15,000,000 SEC fine (2019) |
Images and Descriptions
Volkswagen
Volkswagen intentionally installed “defeat devices” in its diesel engines to cheat on emissions tests, profoundly misleading regulators and consumers about the environmental impact of its vehicles and triggering a global scandal.
General Motors
GM knowingly concealed a faulty ignition switch that could shut off a car’s engine and disable airbags while driving. This decade-long cover-up was linked to at least 124 deaths and resulted in massive penalties.
Toyota
Toyota paid a record-breaking fine for concealing safety defects related to unintended acceleration in its vehicles. The company admitted to misleading consumers and regulators about the dangerous and sometimes fatal problem.
Fiat Chrysler (Stellantis)
Similar to Volkswagen, Fiat Chrysler (now part of Stellantis) used illegal software to cheat on emissions tests for its diesel vehicles. The company faced both civil and criminal penalties for the environmental fraud.
Daimler (Mercedes-Benz)
The parent company of Mercedes-Benz was fined for using illegal defeat devices to evade emissions standards in hundreds of thousands of its diesel vehicles, deceiving both regulators and its environmentally-conscious customers.
Hyundai/Kia
The sister companies were fined for overstating fuel efficiency on over a million vehicles. They later faced massive penalties for being too slow to recall 1.6 million vehicles with engine defects that posed a risk of fire.
Ford
Ford faced a major settlement with 40 U.S. states over claims it falsely advertised fuel economy and payload capacity for certain trucks and misrepresented its emissions certification process, misleading consumers about vehicle performance.
Tesla
Tesla faces intense scrutiny and numerous lawsuits for marketing its driver-assist systems in ways critics say overstate their capabilities. The company has also paid significant penalties for racial discrimination and unsafe labor practices.
BMW
A 2024 U.S. Congressional report found BMW imported cars with parts from a supplier banned over links to Uyghur forced labor. The company has also been fined for misleading investors by inflating its sales reports.
Honda
Honda paid a record fine for violating U.S. safety laws by not reporting a vast number of death and injury claims related to its vehicles over an 11-year period, hiding critical safety data from regulators.
Nissan
The company was embroiled in a scandal involving former CEO Carlos Ghosn’s alleged financial misconduct, leading to SEC fines. Nissan also admitted to widespread data falsification on emissions and fuel economy tests in Japan.
