New details of a lawsuit settlement between the U.S. Justice Department, the state of California and engine manufacturer Cummins Inc. (CMI) -), were released on Jan. 10, which state that the engine maker pay a record total of $2 billion in penalties.
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According to a report by the Associated Press, Cummins is accused of installing "emissions defeat devices," which bypass or disable emissions sensors or devices, resulting in the release of more polluting elements into the air.
Government officials said landmark settlements like these are a result of increased enforcement of excess emissions by manufacturers.
"These results should send a powerful message that admission cheating attempts by vehicle and engine manufacturers will not be tolerated," Environment and Natural Resources Division head of the Justice Department Todd Kim said.
Under the pending settlement, the $2 billion to be paid out by Cummins is split several ways.
Cummins is subject to an initial $1.675 billion fine, which includes $1.48 billion to the federal government, $164 million to the California Air Resources Board (CARB) and $33 million to the California Attorney General.
Additionally, Cummins is ordered to pay about $325 million in emissions remedies, which include $175 million to the state California to reduce excess nitrogen oxide, as well as replacements for high-emitting diesel locomotive engines it supplied.
Cummins' engines are known for its application in diesel-powered models of Stellantis' (STLA) -) popular Ram 2500 and 3500 pickup trucks. It is believed that over 630,000 vehicles had illegal defeat devices installed and 330,000 equipped with undisclosed auxiliary emissions control devices.
Cummins denies any wrongdoing.
As part of the settlement, Cummins must undergo a nationwide recall of more than 600,000 Ram trucks on top of the recalls that were previously conducted to the settlement.
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“We are looking forward to obtaining certainty as we conclude this lengthy matter and continue to deliver on our mission of powering a more prosperous world,” Cummins said in a statement.
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