In an announcement late Friday, the DOJ Fines Cummins record $1.675 billion over defeat devices. This fine is the largest-ever civil penalty for a Clean Air Act Violation according to the U.S. Justice Department.
[Related content: Cummins Ram HD diesel recall details cheat, certificate need]
A record $1.675 billion fine for defeat devices?!
The Justice department said Cummins installed defeat devices on 630,000 2013 to 2019 Ram 2500 and 3500 truck engines and undisclosed auxiliary emissions control devices on 330,000 2019 to 2023 Ram 2500 and 3500 truck engines according to Reuters.
Defeat devices are parts or software that bypass, defeat, or render inoperative emissions controls such as emission sensors and onboard computers.
This is nearly identical to the way VW was caught cheating a few years ago during the so-called diesel-gate scandal.
Stellantis, now parent company of Ram, has said it will recall all the affected trucks and update the software.
DOJ fines Cummins, so what?
The concern is simple: Pollution.
EPA Administrator said “vulnerable communities are more likely to reside near highways where these harmful emissions are concentrated, making this agreement critical to advancing our environmental justice agenda,” according to the announcement.
U.S. Attorney Merrick Garland added “preliminary estimates suggest that defeat devices on some Cummins engines have caused them to produce thousands of tons of excess emissions of nitrogen oxides.”
Light-duty truck pollution accounts for 37 percent of total emissions in the transportation category according to an EPA report. That category includes trains, planes and automobiles.
Big fine, not a big deal?
While the fine seems pretty substantial, it will likely have no effect on Cummins’ business.
Cummins is expected to take a nearly $2.04 billion charge in the fourth quarter to settle these claims from the Justice Department and California Air Resources Board.
However, Jeffries, an American multinational independent investment bank and financial services company, said in a research note the charge “is significant but is not expected to impact normal business operations,” according to Reuters.
Cummins said, in the Reuters story, “the company has seen no evidence that anyone acted in bad faith and does not admit wrongdoing.”
The formal settlement will be made public next year after it gets court approval. Hopefully then we will know more details.
The bottom line
For years, the EPA has been cracking down on diesel defeat devices and shops that specialize in deleting emissions equipment. It is rather surprising then, Cummins, didn’t foresee this coming and make sure its software was compliant. Looks like their big risk is going to turn into a big fine.
