Cummins (NYSE:CMI) agreed to pay a mixed $2B in fines and cures to settle a lawsuit filed by the U.S. Division of Justice and the state of California that charged the corporate with putting in units meant to cheat emissions controls, the DoJ introduced Wednesday.
Underneath the proposed settlement, Cummins (CMI) agreed to pay a $1.675B in civil penalty – the most important ever assessed in a Clear Air Act violation – and spend greater than $325M to treatment the violations associated to the software program “defeat units” that circumvented emissions testing and certifications necessities.
Cummins (CMI) additionally should “full a nationwide automobile recall to restore and change the engine management software program in a whole lot of hundreds of RAM 2500 and RAM 3500 pickup vehicles geared up with the corporate’s diesel engines,” the DoJ stated.
The deal additionally would require the corporate to “lengthen the guarantee interval for sure elements within the repaired autos, fund and carry out initiatives to mitigate extra ozone-creating nitrogen oxides emitted from the autos and make use of new inside procedures designed to forestall future emissions dishonest.”