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“U.S. Engine Maker on the Hook for Record-Breaking Clean Air Act Penalty for Cheating on Emissions Tests

Daily Gold Index by Daily Gold Index
December 23, 2023
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“U.S. Engine Maker on the Hook for Record-Breaking Clean Air Act Penalty for Cheating on Emissions Tests
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U. cummins, one of the largest engine manufacturers in America, is in the midst of facing the highest penalty ever under the Clean Air Act for allegations of emissions test cheating. The EPA and the Department of Justice recently announced that they are seeking a record-breaking $2.5 billion to settle the accusations. This case is significant as it is the first time the EPA has gone after a company for allegedly falsifying emissions testing in order to pass federal standards. The case has also become notable because of the severity of the charges and the magnitude of the corporate penalties now being proposed. The EPA is now demanding an unprecedented $2.5 billion from Cummins, a figure that is greater than the collective $2.3 billion in penalties the agency has imposed all of last year across the entire auto industry. The accusations of deliberate emissions test cheating have been levied at Cummins since at least 2017. According to the charges, the company had been fitting heavy-duty engines with emissions devices known as ‘defeat’ devices that worked to artificially deceive emissions testing. The exploitation of such a device would allow vehicles to generate more output during tests while spewing out excessive emissions when operated in normal conditions. In response to the legal action, Cummins has vowed to cooperate fully with the investigation with its general counsel Dave Gitlin stating, “The company has taken corrective action, put tougher controls in place and redesigned emission control systems for certain engines.” It’s still uncertain if Cummins will be willing to pay the full amount proposed by the EPA, but if they do, it’ll be the largest Clean Air Act penalty of its kind to date. This case serves as a reminder for companies that in order to comply with federal emissions regulations, there is no room for cheating the system.
U. cummins, one of the largest engine manufacturers in America, is in the midst of facing the highest penalty ever under the Clean Air Act for allegations of emissions test cheating. The EPA and the Department of Justice recently announced that they are seeking a record-breaking $2.5 billion to settle the accusations. This case is significant as it is the first time the EPA has gone after a company for allegedly falsifying emissions testing in order to pass federal standards. The case has also become notable because of the severity of the charges and the magnitude of the corporate penalties now being proposed. The EPA is now demanding an unprecedented $2.5 billion from Cummins, a figure that is greater than the collective $2.3 billion in penalties the agency has imposed all of last year across the entire auto industry. The accusations of deliberate emissions test cheating have been levied at Cummins since at least 2017. According to the charges, the company had been fitting heavy-duty engines with emissions devices known as ‘defeat’ devices that worked to artificially deceive emissions testing. The exploitation of such a device would allow vehicles to generate more output during tests while spewing out excessive emissions when operated in normal conditions. In response to the legal action, Cummins has vowed to cooperate fully with the investigation with its general counsel Dave Gitlin stating, “The company has taken corrective action, put tougher controls in place and redesigned emission control systems for certain engines.” It’s still uncertain if Cummins will be willing to pay the full amount proposed by the EPA, but if they do, it’ll be the largest Clean Air Act penalty of its kind to date. This case serves as a reminder for companies that in order to comply with federal emissions regulations, there is no room for cheating the system.
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