Engine maker Cummins to repair, replace 600,000 Ram trucks in $2 billion emissions cheating scandal

By AP News

Published:

In this article

  • Loading...
  • Want to see what you should be buying? Check out our top picks.

The Department of Justice released new details of a settlement with engine manufacturer Cummins Inc. Wednesday that include a mandatory recall of 600,000 Ram trucks, and remedying the environmental damage it caused when it illegally installed emissions control software

Ram Truck Recall

The Department of Justice released new details of a settlement with engine manufacturer Cummins Inc. Wednesday that includes a mandatory recall of 600,000 Ram trucks, and that Cummins remedy environmental damage it caused when it illegally installed emissions control software in several thousand vehicles, skirting emissions testing.

Cummins is accused of circumventing emissions testing through devices that can bypass or defeat emissions controls. The engine manufacturer will pay a $1.675 billion civil penalty to settle claims – previously announced in December and the largest ever secured under the Clean Air Act – in addition to $325 million on remedies.

That brings Cummins’ total penalty for the violations to more than $2 billion, per Wednesday’s announcement, which officials from the U.S. Justice Department, Environmental Protection Agency, California Air Resources Board and the California Attorney General called “landmark” in a call with reporters Wednesday.

“Let’s this settlement be a lesson: We won’t let greedy corporations cheat their way to success and run over the health and wellbeing of consumers and our environment along the way,” California AG Rob Bonta said.

Over the course of a decade, hundreds of thousands of Ram 2500 and 3500 pickup trucks – manufactured by Stellantis – were equipped with Cummins diesel engines that incorporated the bypassing engine control software. This includes 630,000 installed with illegal defeat devices and 330,000 equipped with undisclosed auxiliary emission control devices.

Officials could not estimate how many of those vehicles are currently on the road, but Cummins – which has maintained it has not done any wrongdoing – must undergo a nationwide recall of more than 600,000 noncompliant Ram vehicles, in addition to recall efforts previously conducted.

Stellantis deferred comment on the case to engine maker Cummins, which said in a statement that Wednesday’s actions do not involve any more financial commitments than those announced in December. “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.

Cummins also said the engines that are not being recalled did not exceed emissions limits.

As part of the settlement, Cummins is also expected to back projects to remedy excess emissions that resulted from its actions.

Preliminary estimates suggested its emissions bypass produced “thousands of tons of excess emissions of nitrogen oxides,” U.S. Attorney General Merrick B. Garland previously said in a prepared statement.

The Clean Air Act, a federal law enacted in 1963 to reduce and control air pollution across the nation, requires car and engine manufacturers to comply with emission limits to protect the environment and human health.

___

AP Auto Writer Tom Krisher contributed.

___

Alexa St. John is an Associated Press climate solutions reporter. Follow her on X, formerly Twitter, @ast.john. Reach her at [email protected].

___

The Associated Press’ climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.

Explore more on these topics:

Share:

IMPORTANT NOTICE AND DISCLAIMER

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Originally published by Associated Press Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

Sign up for Investing Intel Newsletter