Cummins fined $A2.5 billion in US

Engine manufacturer Cummins Inc has reached an in-principle agreement with the US Department of Justice and the State of California to pay a $US1.675 billion ($A2.5b) penalty to settle claims that it violated the Clean Air Act by installing emissions ‘defeat devices’ on hundreds of thousands of inline six-cylinder diesel engines.

The US Clean Air Act requires vehicle and engine manufacturers to ensure 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 MY19-23 RAM 2500 and 3500 engines.

Cummins agreed in principle to payment of the fine, which will be court-formalised later this month, after already spending a claimed $US59 million (about $A87m) in recalling MY19 RAM 2500 and 3500 pick-ups, and has initiated a recall of the MY13-18 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 is yet to reply to our request for comment, but there’s unlikely to be any ramifications for the local RAM importer or its customers.

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

“The Justice Department is committed to vigorously enforcing the environmental laws that protect the American people from harmful pollutants,” said US attorney general Merrick Garland in a statement issued by the US DoJ.

“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.”