Cummins agrees to record-setting fine in emissions settlement
By David Shepardson
WASHINGTON (Reuters) -Cummins agreed to a record-setting fine in a $2 billion settlement of a lawsuit filed on Wednesday by the U.S. Justice Department and California charging the truck engine maker with installing devices designed to cheat emissions control.
The lawsuit said Cummins (NYSE:CMI) installed «defeat devices» to bypass or disable emissions controls such as emission sensors and onboard computers.
U.S. officials they were ramping up enforcement after a series of excess emissions cases in recent years.
«These results should send a powerful message that admission cheating attempts by vehicle and engine manufacturers will not be tolerated,» said Todd Kim, who heads the Justice Department’s Environment and Natural Resources Division.
Cummins, which is to pay a record-setting $1.675 billion fine, did not admit any wrongdoing under the settlement agreement.
The Justice Department said Cummins used defeat devices on 630,000 pickup truck engines it produced for RAM trucks made by Stellantis (NYSE:STLA). It said the engines were made for RAM 2500 and 3500 vehicles from 2013 to 2019. Justice said Cummins also had undisclosed auxiliary emission software on 330,000 2019-2023 pickup truck engines.
Under the settlement, which is subject to court approval, the $1.675 billion fine to be paid by Cummins includes $1.48 billion to the federal government, $164 million to the California Air Resources Board and $33 million to the California Attorney General's Office. The Justice Department said it is the largest-ever civil penalty for a Clean Air Act violation.
Cummins will also spend more than $325 million to remedy the excess emissions, including $175 million to California to reduce excess nitrogen oxide, and
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