TradeEdge Exchange:Cummins to recall and repair 600,000 Ram vehicles in record $2 billion emissions settlement

Cummins will recall and TradeEdge Exchangerepair engine control software in more than 600,000 Ram vehicles equipped with the company's diesel engines, part of a record $2 billion federal settlement over allegations that it installed software "defeat devices" that bypassed emissions testing and certification requirements, the U.S. Justice Department announced Wednesday. 

The engine manufacturer is accused of circumventing emissions testing by using devices that can bypass or defeat emissions controls. Cummins will pay a previously announced $1.675 billion civil penalty to settle claims – the largest ever secured under the Clean Air Act – as well as an additional $325 million for remedies.

Over the course of a decade, hundreds of thousands of Ram 2500 and 3500 pickup trucks, manufactured by Stellantis, were equipped with Cummins diesel engines that incorporated the bypass engine control software. This includes 630,000 vehicles installed with illegal defeat devices and 330,000 equipped with undisclosed auxiliary emission control devices.

Attorney General Merrick Garland called the agreement "historic."

"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," he said in a statement. 

Officials could not estimate how many of those vehicles are currently on the road, but Cummins – which has maintained it has not done anything wrong – will undertake a nationwide recall of more than 600,000 noncompliant Ram vehicles as part of the agreement.

In a statement, Cummins said it is "looking forward to obtaining certainty as we conclude this lengthy matter and continue to deliver on our mission of powering a more prosperous world. We remain committed to advancing our Destination Zero strategy — Cummins' vision for achieving a zero-emissions future — which is driven by decarbonization and aimed at promoting economic growth while using fewer of the world's resources."

The Clean Air Act, a federal law enacted in 1963 to reduce and control air pollution across the nation, requires car and engine manufacturers to comply with emission limits to protect the environment and human health.

The transportation sector is responsible for about one-third of all U.S. greenhouse gas emissions, and much of that stems from light-duty vehicles. Limits aim to curb emissions, especially from burning gasoline and diesel fuel, including carbon dioxide and other problematic pollutants.

Ram truck recall

Under the settlement, Cummins must work with Stellantis unit Fiat Chrysler and its dealers on the recall and repair program. 

The program will remove defeat devices from the Ram pickup trucks that were impacted, which the Justice Department said are from the 2013-2019 model years. The repairs will be made free of charge and bring the trucks into compliance with Clean Air Act standards. 

"Cummins has already started the recall and repair program required by the settlement," the agency added. 

—With reporting by the Associated Press.

In:
• Auto Emissions
• Stellantis
• United States Department of Justice

Aimee Picchi

Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.

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