Diesel engine manufacturer Cummins has agreed to a historic $1.675 billion penalty to settle allegations of using emissions defeat devices. This fine, the largest ever under the Clean Air Act, would also be the second-largest environmental penalty in U.S. history.
The case centers on accusations that Cummins employed defeat devices in 630,000 Ram 2500 and 3500 pickup trucks spanning from the 2013-2019 model years and an additional 330,000 Ram 2500 and 3500s from the 2019 to 2023 model years.
Despite the settlement, Cummins stated that it has “seen no evidence that anyone acted in bad faith and does not admit wrongdoing.” The company added that it has been cooperating with regulators and has worked with Stellantis to recall model year 2019 Ram trucks. Additionally, it has initiated a recall for 2013-2019 model year pickups and will recalibrate the software in these vehicles to ensure compliance with emissions regulations.
Read: FCA Hit With Amended Class-Action Claiming Ram Trucks Used Two Defeat Devices
Jon Mills, a spokesperson for Cummins, told the New York Times that the next steps for addressing emissions issues in later models are unclear, but the company will continue to collaborate with regulators. Meanwhile, Attorney General Merrick Garland, said that the Justice Department, which partnered with the Environmental Protection Agency (EPA) for this investigation, has been working aggressively to enforce regulations.
“Violations of our environmental laws have a tangible impact. They inflict real harm on people in communities across the country,” said Garland, in a statement. “This historic agreement should make clear that the Justice Department will be aggressive in its efforts to hold accountable those who seek to profit at the expense of people’s health and safety.”
The EPA has been keeping a close eye on companies that seek to cheat in emissions tests since the Volkswagen Dieselgate scandal, which broke in 2015. In that case, the German automaker agreed to pay up to $14.7 billion in a consumer class-action settlement.
In a statement, Cummins announced that it anticipates recording a charge of $2.04 billion to address the emissions issue. Nevertheless, the company asserted that it remains in a “strong financial position with existing liquidity and access to capital to satisfy obligations.”
Now that it has signed a settlement in principle, the agreement is contingent on obtaining regulatory and judicial approval.
