Cummins faces record USD 2 billion penalty for emissions cheating scandal

Diesel engine manufacturer Cummins faces a colossal penalty of USD 1.675 billion for allegedly installing emissions defeat devices in nearly one million Ram Heavy Duty trucks spanning the years 2013 to 2023. This marks the largest civil penalty ever imposed under the Clean Air Act and the second-largest environmental penalty in history.

Cummins Denies Wrongdoing Amidst Record Settlement

Despite agreeing to the massive settlement and committing to recall and remediation efforts, Cummins maintains its innocence, stating that it “sees no evidence that anyone acted in bad faith and does not admit wrongdoing.” The company claims to have collaboratively addressed issues over the past four years and officially reviewed its emissions certification and compliance process in 2019 following discussions with federal regulators.

Nearly One Million Ram Trucks Affected

The Environmental Protection Agency (EPA) and the Department of Justice have not provided detailed insights into how Cummins committed the alleged infractions. However, documents reveal that almost one million Ram 2500 and 3500 heavy-duty pickups built between 2013 and 2023 are embroiled in the controversy. Of these, approximately 630,000 trucks from 2013 to 2019 were equipped with software-related defeat devices, while the remaining 330,000 trucks from 2020 to 2023 included “undisclosed engine control features.”

EPA’s Discovery and Testing Methods

The EPA uncovered the emissions defeat devices during testing at the agency’s National Vehicle and Fuel Emissions Laboratory in Michigan. This testing followed a 2015 warning to manufacturers about special testing in the aftermath of Volkswagen’s “Dieselgate” scandal. Cummins, as the engine manufacturer, is now responsible for rectifying the situation.

Recall Program and Repair Process

As part of the settlement, Cummins must collaborate with Ram and its dealers on a recall program to eliminate the defeat device from all affected 2013 to 2019 Ram trucks free of charge. The repair involves a simple software update, and Cummins is mandated to repair at least 85 percent of the affected trucks within three years. Additionally, an extended warranty covering the emissions systems of the repaired vehicles must be offered.

Uncertain Impact on Vehicle Performance

The potential impact of the repair on the trucks’ power output, towing capability, diesel exhaust fluid usage, or fuel economy remains unknown. Furthermore, there is no official announcement regarding a solution for affected 2020 to 2023 model Ram Heavy Duty trucks.

Offsetting Excess NOx Emissions

In addition to repairing the affected vehicles, the EPA has imposed a requirement for Cummins to fully offset the excess nitrogen oxide (NOx) emissions produced by the 2013 to 2019 trucks equipped with the defeat device. For California, Cummins will make a lump-sum payment of “slightly more than USD 175 million” to the California Air Resources Board (CARB), funding NOx mitigation projects across the state. Nationally, Cummins will collaborate with railroad locomotive owners on emissions reduction projects, including replacing 27 old, high-emission diesel locomotives and funding 50 projects aimed at reducing idling time for diesel-powered switching locomotives.

A Harsh Reminder from Volkswagen’s “Dieselgate”

This recent development draws parallels with the 2015 case involving Volkswagen, where the automaker intentionally programmed its diesel engines to manipulate emissions control systems during laboratory testing. Volkswagen faced severe consequences, paying up to USD 14.7 billion in settlements and fines by June 2020. 

As Cummins grapples with this record penalty, the automotive industry is reminded of the significant repercussions that follow environmental violations. The fallout from this scandal raises questions about accountability and the measures needed to ensure compliance with emissions standards in the future.

 

WionDrive News Desk: