Diesel engine maker Cummins to pay record $1.675B emissions settlement
The federal government and state of California accused Cummins of "cheating" to avoid emissions laws
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Diesel engine manufacturer Cummins has agreed to pay $1.675 billion to settle civil cases brought against the company by the U.S. Department of Justice and the state of California for allegedly skirting emissions laws.
The DOJ announced the civil penalty in a press release Wednesday, noting the fine is the largest ever handed down 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 Clean Air Act violations. (Luke Sharrett/Bloomberg via Getty Images / Getty Images)
The feds accused Cummins of illegally installing "defeat devices" used to jam or bypass emission sensors and software in several hundred thousand engines.
"The Justice Department 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 we allege that Cummins installed in its engines to cheat federal environmental laws have a significant and harmful impact on people’s health and safety."
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The lawsuit claims the defeat devices were installed in 630,000 RAM 2500 and 3500 pickup engines from the 2013 to 2019 model years, and that another 330,000 RAMs from 2019 to 2023 had undisclosed devices in them but those did not result in excess emissions.
HOUSTON, TEXAS - DECEMBER 14: Ram 1500 models are seen on a lot at the Mak Haik dealership on December 14, 2022 in Houston, Texas. Cummins has agreed to recall over 900,000 engines in RAM pickups to update their emissions software. (Brandon Bell/Getty Images / Getty Images)
Cummins noted in a statement Wednesday that it had agreed to the settlement terms back in December, saying "today marks another step toward concluding that four-year review."
"As Cummins said then, we are looking forward to obtaining certainty as we conclude this lengthy matter and continue to deliver on our mission of powering a more prosperous world," the statement said.
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"We remain committed to advancing our Destination Zero strategy — Cummins’ vision for achieving a zero-emissions future — which is driven by decarbonization and aimed at promoting economic growth while using fewer of the world's resources," it added.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CMI | CUMMINS INC. | 372.62 | +5.58 | +1.52% |
Cummins, Inc.
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Cummins did not admit to any wrongdoing in the settlement, but the impacted vehicles will be recalled to update their emissions controls software.
Reuters contributed to this report.