Engine and power solutions manufacturer Cummins Inc announced recently it had reached an agreement in principle with the U.S. Department of Justice (DOJ) over claims the company had installed “emissions defeat devices” on pick-up truck engines.
According to the DOJ, the company violated the Clean Air Act by installing the devices on hundreds of thousands of engines. The Clean Air Act requires manufacturers to ensure their products are within applicable emission limits. The DOJ said Cummins installed devices on 630,000 RAM 2500 and 3500 pickup truck engines that rendered emission control sensors and onboard computers inoperable. Additionally, the DOJ said the company installed undisclosed auxiliary emission control devices on 330,000 RAM 2500 and 3500 pickup engines.
“The Justice Department is committed to vigorously enforcing the environmental laws that protect the American people from harmful pollutants,” U.S. Attorney General Merrick Garland said in a statement. “As part of the agreement, the Justice Department will require Cummins to pay $1.675 billion, the largest civil penalty we have ever secured under the Clean Air Act, and the second largest environmental penalty ever secured.”
Cummins said it had cooperated fully with regulators and had already addressed many of the issues brought up by regulators from the U.S. Environmental Protection Agency (EPA), the California Air Resources Board (CARB), the Environment and Natural Resources Division of the Department of Justice (DOJ), and the California Attorney General’s Office.
After an extensive internal review, the company said, it had found no evidence anyone within the company had acted in bad faith. The company did not admit to any wrongdoing, but will record a charge of approximately $2.04 billion in the last quarter of 2023 to settle the matter. Cummins said it has recalled RAM 2500 and 3500 trucks made in 2019, as well as RAM 2500 and 3500 trucks made between 2013 and 2018 at a cost of $59 million.