Cummins fined $A2.5bn by USA Justice Department

On 23 December, 2023, engine manufacturer Cummins Inc disclosed that it had reached an agreement in principle with the United States DOJ and the State of California. Cummins agreed to pay a $US1.675 billion ($A2.5 billion) penalty, to settle claims that it violated the Clean Air Act by installing emissions defeat devices on hundreds of thousands of I6 diesel engines.

The Clean Air Act requires vehicle and engine manufacturers to ensure that their products comply with applicable emission limits. Defeat devices are parts or software that bypass, defeat, or render inoperative emissions controls such as emission sensors and onboard computers.

Cummins allegedly installed defeat devices on 630,000 model year 2013 to 2019 RAM 2500 and 3500 pick-up truck engines. The company also allegedly installed undisclosed auxiliary emission control devices on 330,000 model year 2019 to 2023 RAM 2500 and 3500 engines.

Cummins agreed in principle to payment of the fine that will be court-formalised later this month.

Cummins has already spent a claimed $US59 million (around $A87 million) in recalling 2019MY RAM 2500 and 3500 pick-ups, and has initiated a recall of the 2013-2018MY models.

“I want to emphasise that the company has seen no evidence that anyone acted in bad faith and does not admit wrongdoing,” said Cummins’ US external communications director, Jon Mills.

RAM Trucks Australia imports RAM vehicles with Cummins power, so trucksales asked the company for comment, but the Xmas/New Year season intervened and we’re waiting for an official statement from this company.

However, Australia’s emissions laws are much less stringent than those the USA, so there may be no ramifications (poor pun - Ed) for the Australian importer and RAM owners.

The USA DOJ ruling is also unlikely to affect the decisions made by Daimler Trucks and Isuzu Trucks to standardise on the Cummins I6, 6.7-litre engine for both companies’ future mid-range diesel products. The alleged violations are not hardware related and apply to pick-up classification vehicles, not to medium trucks.

The US Justice Department issued the following statement from Attorney General Merrick B. Garland: “The Justice Department is committed to vigorously enforcing the environmental laws that protect the American people from harmful pollutants.

“Today, the Justice Department reached an initial agreement with Cummins Inc to settle claims that, over the past decade, the company unlawfully altered hundreds of thousands of engines to bypass emissions tests in violation of the Clean Air Act.

“As part of the agreement, the Justice Department will require Cummins to pay $US1.675 billion: the largest civil penalty we have ever secured under the Clean Air Act and the second largest environmental penalty ever secured.

“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.

“For example, in this case, our preliminary estimates suggest that defeat devices on some Cummins engines have caused them to produce thousands of tons of excess emissions of nitrogen oxides.

“The cascading effect of those pollutants can, over long-term exposure, lead to breathing issues, like asthma and respiratory infections.

“Violations of our environmental laws have a tangible impact, inflicting real harm on people in communities across the country.

“This historic agreement should make clear that the Justice Department will be aggressive in its efforts to hold accountable those who seek to profit at the expense of people’s health and safety.”