Cummins Fined $1.6 Billion for Alleged Emissions Deception

In an unprecedented move, prominent truck engine manufacturer Cummins has agreed in principle to a $1.6 billion settlement. This momentous decision comes in response to claims leveled by the U.S. and the state of California, accusing the company of deliberately installing devices that fool pollution controls. The alleged actions have led to detrimental effects on hundreds of thousands of engines, marking a significant violation of the Clean Air Act.

This hefty fine marks the largest penalty ever recorded under the Clean Air Act and the second-highest environmental penalty in U.S. history.

The crux of Cummins‘ accusations centers around the installation of defeat devices. These pieces of hardware or software are designed to sabotage emissions controls, including pollution sensors and onboard computers. Underhandedly, these devices ensure that vehicles pass emissions inspections while covertly emitting high levels of pollutants like nitrogen oxide, a major culprit in triggering conditions like asthma and other respiratory diseases.

The Justice Department asserts that the company installed these defeat devices in nearly 630,000 RAM 2500 and 3500 pickup truck engines produced from 2013 to 2019. Moreover, allegations state that Cummins covertly introduced auxiliary emission control devices in an additional 330,000 engines in the RAM 2500 and 3500 model trucks manufactured from 2019 to 2023.

Stellantis, the manufacturer of these trucks, has already initiated recall procedures for the 2019 models and has kick-started the same for the 2013 to 2018 models.

Attorney General Merrick Garland stresses the seriousness of these allegations, stating, “Violations of our environmental laws have a tangible impact. They inflict real harm on people in communities across the country.” Through this record-breaking settlement, Garland emphasizes that the Justice Department will not hold back in holding those accountable who put profit before people’s health and safety.

As the dust begins to settle, Cummins maintains its innocence. The company states it has seen no evidence of any bad faith actions and does not admit any wrongdoing. In its defense, Cummins says that it has fully cooperated with the necessary regulatory bodies, tackled many of the highlighted issues, and is keen to reach closure on this drawn-out process.

This case echoes the 2016 Volkswagen scandal, wherein the auto giant agreed to a massive $14.7 billion payout in a consumer class-action case over similar defeat device allegations. It serves as a stark reminder of the toll that such deceptions can have, not just on the environment but on the companies’ reputations and bottom lines.