U.S. engine manufacturer, Cummins Inc., said Friday it had reached an agreement in principle to pay $1.675 billion in federal and California penalties to settle claims that the company installed emissions defeat devices.

The U.S. Department of Justice alleged in its suit the devices were installed to disable the emissions controls on almost 1 million Cummins engines used in RAM pickup trucks.

What You Need To Know

  • Cummins Inc. reached an agreement in principle to pay $1.675 billion in federal and California penalties for installing emissions defeat devices

  • The U.S. Department of Justice alleges the devices were installed to disable the emissions controls on almost 1 million Cummins engines used in RAM pickup trucks

  • Cummins said it cooperated with regulators, has addressed many of the issues involved and admitted no wrongdoing

  • The DOJ civil penalty against Cummins is the largest it has ever secured under the Clean Air Act

“The company has cooperated fully with the relevant regulators, already addressed many of the issues involved and looks forward to obtaining certainty as it concludes this lengthy matter,” Cummins said in a statement posted to its website Friday. “The company has seen no evidence that anyone acted in bad faith and does not admit wrongdoing.”

Cummins said it has already recalled model year 2019 RAM 2500 and 3500 trucks and has initiated a recall of model years 2013 through 2018 RAM 2500 and 3500 trucks. The U.S. Department of Justice alleges the defeat devices were installed on 630,000 of the 2013-2019 RAMs and 330,000 2019-2023 RAMs.

“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,” U.S. Attorney General Merrick B. Garland said in a statement.

The DOJ estimates the engines’ produced thousands of tons of excess nitrogen oxide emissions. According to the U.S. Environmental Protection Agency, nitrogen oxides damage the human respiratory system and contribute to acid rain.

The Clean Air Act requires vehicle and engine makers to comply with emissions standards established by the U.S. Environmental Protection Agency, National Highway Traffic Safety Administration and California Air Resources Board.

The Cummins’ settlement comes seven years after Volkswagen was ordered to pay $14.7 billion to the federal government and state of California to settle allegations it had cheated on emissions tests and deceived customers by installing defeat devivces on 500,000 diesel passenger vehicles it sold and leased in the United States.

The DOJ civil penalty against Cummins is the largest it has ever secured under the Clean Air Act.

Based in Columbus, Ind., Cummins is one of the country’s largest and oldest engine makers. Founded in 1919, it employs almost 74,000 people and earned nearly $2.2 billion on sales of $28.1 billion in 2022.