Cummins Faces Historic $1.675B Penalty for Ram Truck Emission Defeat Devices

Dec 28, 2023 01:27 AM EST

RAM TRUCK RAM 3500 DEVILS TOWER — (Photo : PIXABAY/RJPickens)

Cummins is facing an extraordinary $1.675 billion environmental penalty for putting engine emission defeat devices on several Ram Trucks. Cummins was penalized the most under the Clean Air Act for putting defeat devices on 630,000 Ram 2500 and 3500 engines from 2013 to 2019. A company placed hidden emission controls in 330,000 Ram 2500 and 3500 engines from 2019 to 2023.

Clean Air Act Violation

Preliminary assessments suggest that certain Cummins engines equipped with defeat devices have emitted thousands of excess tons of nitrogen oxides. The company has acknowledged its intention to pay a charge of nearly $2.04 billion in the fourth quarter. The Automotive News provided details about this historic event.

This is to address regulatory claims regarding emissions certification and compliance for almost one million engines. Cummins stated that it has not found ill faith or admitted wrongdoing. Attorney General Merrick Garland said the settlement addressed "company illicitly modified hundreds of thousands of engines to evade emissions assessments, contravening the Clean Air Act."

Cummins case is the second-largest environmental penalty deal. The company whose clients include Paccar and Daimler Trucks North America, anticipates that approximately $1.93 billion of the entire penalty will be disbursed during the initial half of the upcoming year. This penalty pertains to their involvement in engine emission issues in Ram Trucks, constituting a substantial portion of the environmental fine.

Reuters reported that Cummins Inc., a manufacturer of truck engines, has tentatively accepted a $1.675 penalty for the installation of devices on hundreds of thousands of engines, enabling them to discharge excessive pollutants. This penalty, announced by the U.S. Justice Department on Friday, stands as the most substantial civil penalty ever imposed for a Clean Air Act violation.

According to the Department, Cummins is accused of fitting what are known as "defeat devices" designed to circumvent or deactivate emissions control mechanisms, including emission sensors and onboard computers, in their engines. This action involves engine emission issues and amounts to the biggest environmental fine ever.

Cummins Response

The official statement, pending court approval, will likely be published next month. RAM owned by Stellantis declined to comment.The recall of the 960,000 vehicles has been initiated, and Cummins has stated that updates to the emissions control software will be implemented, previously incurring a $59 million charge for emissions-related recalls.

Back in April 2019, Cummins initially disclosed its internal review of its emissions certification procedures and compliance.

Report stated that Cummins had previously disclosed the scrutiny of U.S. regulators regarding Nissan Titan trucks from the 2016 to 2019 model years, and they had been in the process of developing new software calibration and hardware solutions for the recall of these trucks.

Cummins had previously set aside $59 million to address the expenses associated with the recalls involving RAM and Titan, and Nissan did not provide immediate comments on Friday.

About Cummins

The company has over 9,000 locations worldwide. Cummins is integrating its business and environmental initiatives to capitalize on decarbonization growth. The corporation aspires to lead climate change efforts, decrease its environmental effect, and help consumers and communities move to cleaner energy.