Cummins Settles Emissions Cheating Claims with $1.675 Billion Penalty
Cummins Inc, a truck engine maker, has agreed in principle to pay a $1.675 billion penalty for installing emissions defeat devices on hundreds of thousands of engines, making it the largest-ever penalty for a Clean Air Act violation. The U.S. Justice Department alleges that Cummins installed defeat devices on 630,000 RAM pickup truck engines and undisclosed auxiliary emission control devices on 330,000 other engines. The agreement resolves allegations that the company unlawfully altered engines to bypass emissions tests. Cummins expects to take a $2.04 billion charge in the fourth quarter to resolve regulatory claims on nearly 1 million engines.