Cummins Inc. Hit With $2B Fine and Must Recall Ram Trucks

Cummins Inc., a recognized engine maker, was forced to announce a recall spanning 600,000 Ram trucks. This comes as a repercussion of its shady business practices involving illegal software to dodge diesel emissions tests. The recall is part of the company’s agreement with authorities from both federal and California offices, as well as a way to rectify the environmental harms caused.

The settlement, unveiled recently, was initially established in December. Cummins was already committed to paying a hefty civil penalty of $1.675 billion — a record under the Clean Air Act — plus an additional $325 million to remedy pollution. These sums together lift Cummins’ total penalty past the $2 billion mark.

What makes this settlement extraordinary, according to officials from organizations such as the Justice Department, Environmental Protection Agency, and the California Attorney General, is the message it sends: Corporations cannot prioritize profits over environmental health and consumer wellness.

Over the span of a decade, numerous Ram 2500 and 3500 heavy-duty pickup trucks, manufactured by Stellantis, were loaded with Cummins diesel engines. The problem? These engines contained software that primarily reduced nitrogen oxide pollution during emissions tests but allowed higher pollution during everyday use.

In total, around 630,000 pickups made from 2013 to 2019 will be recalled due to these “defeat devices.” An additional 330,000 trucks made between 2019 to 2023 had emissions control software that wasn’t properly reported to the authorities but did not disable emissions controls. However, the number of these recalled trucks still on the run remains uncertain.

Denying the government’s allegations, Cummins has agreed to complete its settlement obligations without admitting liability. The financial commitments remain consistent with the ones declared in December. The company clarified that engines that were flagged but aren’t being recalled did not breach emissions limits. As a clause in the settlement, Cummins will compensate for the smog-causing pollution resulting from its actions.

The transportation sector accounts for about one-third of U.S. greenhouse gas emissions, majorly originating from light-duty vehicles. The emission standards are vital to reduce the amount of pollutants from burning gasoline and diesel fuel, safeguarding both the environment and public health.