Truck Engine Manufacturer Cummins Pays Out Nearly $1.65 Billion for Defeat Devices

Cummins, a truck engine manufacturer, has agreed to a record-breaking settlement of around $1.65 billion with the U.S. Justice Department and California due to selling engines equipped with defeat devices, reports Reuters.

In a lawsuit filed Wednesday by the Justice Department and the state of California, Cummins allegedly had engines equipped with what are called ‘defeat devices:’ technology that allows vehicles to bypass emissions tests by manipulating components such as emission sensors and onboard computers.

According to the lawsuit filed, defeat devices were found on 630,000 model year 2013-2019 RAM 2500 and 3500 pickup truck engines. It also alleges that Cummins sold auxiliary emission control devices on 330,000 2019 to 2023 RAM 2500 and 3500 pickup truck engines.

This past December, Cummins had agreed in principle with the settlement, according to the Justice Department. Cummins has stated that the lawsuit filed is aligned with what was agreed upon.

Cummins will pay $1.48 billion to the federal government and $164 million to California, but the company will have to pay higher penalties if at least 85% of the 960,000 vehicles recalled for the defeat devices do not receive software updates. The Justice Department called it the largest civil penalty issued for a Clean Air Act violation to date.