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Cummins Inc. Agrees to Pay $1.675 Billion Penalty for Installing Defeat Devices on Pickup Trucks to Bypass Emissions Tests

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Key takeaways:

  • Cummins Inc. has agreed to pay a $1.675 billion penalty to settle claims by regulators that the company unlawfully altered hundreds of thousands of pickup truck engines to bypass emissions tests.
  • The $1.675 billion fine would be the largest civil penalty the Justice Department has secured under the Clear Air Act to date and second largest environmental penalty ever secured.
  • In addition to the penalty, Cummins has agreed to implement a comprehensive compliance program to ensure that its products comply with all applicable environmental laws and regulations, and will be subject to independent oversight for a period of three years.

Engine manufacturer Cummins Inc. has agreed to pay a $1.675 billion penalty to settle claims by regulators that the company unlawfully altered hundreds of thousands of pickup truck engines to bypass emissions tests.

According to the Justice Department, Cummins installed “defeat devices” on approximately 1 million 2013-2019 Ram 2500 and 3500 pickup trucks. Defeat devices are designed to bypass, defeat, or render inoperative emissions controls such as emission sensors and onboard computers.

The $1.675 billion fine would be the largest civil penalty the Justice Department has secured under the Clear Air Act to date and 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,” said Attorney General William Barr. “The Department of Justice will continue to take aggressive action against companies that violate our environmental laws and put the public’s health at risk.”

In addition to the penalty, Cummins has agreed to implement a comprehensive compliance program to ensure that its products comply with all applicable environmental laws and regulations. The company will also be subject to independent oversight for a period of three years.

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