Last week, American diesel engine manufacturer Cummins was fined $1.675 billion by the US Department of Justice, setting the largest civil fine in US history.
According to the US Department of Justice, Cummins has violated the Clean Air Act by installing so-called "failure devices" to bypass or disable emission control devices such as emission sensors and onboard computers, resulting in hundreds of thousands of engines emitting excessive pollutants.
The US Department of Justice also pointed out that Cummins used failure devices on 630000 RAM pickup truck engines between 2013 and 2019, and used undisclosed auxiliary emission control devices on 330000 RAM truck engines from 2019 to 2023 to bypass emission control requirements.
US Attorney General Merrick Garland has stated that preliminary estimates suggest that a faulty device on the Cummins engine resulted in excessive emissions of thousands of tons of nitrogen oxides. The punishment of Cummins is also the second largest environmental penalty agreement reached in American history.
Is there a concentrated outbreak of scandals in the automotive industry?
Last Wednesday, Daihatsu Motors, a subsidiary of Toyota Motor, which is the world's best-selling car manufacturer, was also exposed for fraud. Due to data fraud in airbags, the subsidiary has suspended all shipments. However, there are various rumors in the market, and the troubles caused by the outbreak seem to be constantly expanding.
The scandal involving Cummins has involved many customers, including Stellantis and Nissan, the subsidiary of Titan Trucks. Previously, Cummins stated that US regulatory agencies were also reviewing Nissan's review of Titan trucks from 2016 to 2019. In addition, Cummins' clients also include Paccar and Daimler Trucks North America.
But Cummins stated in a statement that the company has not found any evidence to suggest that the action was taken for malicious purposes by anyone, and the company does not acknowledge any improper behavior.
Jefferies, an investment company, pointed out in its research report that the fine amount is significant, but it is expected to not affect Cummins' normal business operations.
In 2017, Volkswagen was fined $1.45 billion by the US government for installing emission cheating devices in its cars. Volkswagen disclosed in 2015 that it cheated on 11 million cars worldwide and used complex software to reduce emissions data exposure.