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Diesel engine maker Cummins has agreed to pay $1.675 billion to settle civil lawsuits brought against the company by the U.S. Department of Justice and the state of California for allegedly evading emissions laws.
The Justice Department announced the civil penalty in a news release Wednesday, noting that it is the largest fine ever imposed for alleged violations of the Clean Air Act.
Signage at the Cummins Seymour Engine Plant in Seymour, Indiana, U.S., on Monday, April 18, 2022. Cummins has agreed to the largest fine ever imposed for alleged violations of the Clean Air Act. (Luke Sharrett/Bloomberg via Getty Images / Getty Images)
Federal authorities accused Cummins of illegally installing “defeat devices” that jam or bypass emissions sensors and software in several hundred thousand engines.
“The Department of Justice is committed to vigorously enforcing environmental laws that protect the American people from harmful pollutants,” Attorney General Merrick Garland said in a statement accompanying the announcement. “The types of devices that we believe Cummins is installing in its engines to circumvent federal environmental laws have significant and harmful impacts on people’s health and safety.”
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The lawsuit alleges that the defeat devices were installed in 630,000 2013 to 2019 RAM 2500 and 3500 pickup engines and that an additional 330,000 2019 to 2023 RAMs contained undisclosed devices but did not result in excessive emissions.
HOUSTON, TEXAS – DECEMBER 14: Ram 1500 models are seen in a parking lot at the Mak Haik dealership in Houston, Texas on December 14, 2022. Cummins has agreed to recall over 900,000 engines in RAM pickup trucks to update their emissions software. (Brandon Bell/Getty Images/Getty Images)
Cummins noted in a statement Wednesday that it had already agreed to the settlement terms in December, saying, “Today marks another step toward completing this four-year review.”
“As Cummins said at the time, we look forward to gaining certainty as we conclude this protracted matter and continue to deliver on our mission to ensure a more prosperous world,” the statement said.
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“We remain committed to advancing our Destination Zero strategy – Cummins' vision for a zero-emissions future – based on decarbonization and aimed at driving economic growth while using fewer of the world's resources,” it said.
| ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CMI | CUMMINS INC. | 239.27 | -0.07 | -0.03% |
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Cummins did not admit any wrongdoing in the settlement, but the affected vehicles will be recalled to update their emissions control software.
Portal contributed to this report.