Cummins Agrees to Landmark Civil Penalty
Cummins, publicly listed on NYSE under the ticker symbol CMI, has reached an unprecedented settlement with the U.S. Department of Justice and the state of California following allegations of installing devices designed to manipulate emissions controls. The Department of Justice made the announcement on Wednesday.
Record-Breaking Financial Obligation
As part of the proposed settlement, Cummins (CMI) will pay a staggering $1.675 billion as a civil penalty. This is the highest amount ever assessed in a Clean Air Act violation. Additionally, the company has committed to spending over $325 million to rectify the infringements associated with the illicit software “defeat devices” that were used to bypass emissions tests and certification requirements.
Nationwide Vehicle Recall and Other Obligations
Besides the substantial financial penalty, Cummins (CMI) is mandated to conduct a nationwide recall of hundreds of thousands of RAM 2500 and RAM 3500 pickup trucks equipped with their diesel engines to replace the engine control software. Furthermore, the company must extend the warranty period for certain parts in the repaired vehicles, fund and execute projects to reduce excess nitrogen oxides emissions, and implement new internal protocols to prevent future emissions cheating.
