Largest ever Clean Air case penalty and nationwide vehicle recall

  • Cummins to pay $1.7 billion in settlement over vehicle emissions test cheating
  • Largest ever civil penalty assessed in a Clean Air case
  • Cummins to spend over $325 million to remedy violations
  • Nationwide vehicle recall for RAM 2500 and RAM 3500 pickup trucks
  • Extended warranty period and projects to mitigate excess emissions
  • Settlement valued at over $2 billion

Diesel engine maker Cummins has reached a proposed settlement with the Department of Justice over alleged violations of the Clean Air Act and California law. The settlement includes a $1.675 billion civil penalty, the largest ever in a Clean Air case, and over $325 million to address the violations. Cummins will also conduct a nationwide vehicle recall for RAM 2500 and RAM 3500 pickup trucks, extend warranty periods, fund emissions mitigation projects, and implement new procedures to prevent future cheating. The settlement, valued at over $2 billion, aims to address the harmful effects of nitrogen oxide emissions on air quality and respiratory health.

Public Companies: Cummins (null), Stellantis (null), Fiat Chrysler (null), PSA Group (null)
Private Companies:
Key People: Frank Tang (Reporter), Jeff Barber (Editor)

Factuality Level: 8
Justification: The article provides specific details about the settlement reached between the Department of Justice and Cummins over alleged violations of the Clean Air Act and California law. It includes information about the civil penalty, the required remedies, the vehicle recall, and the impact of NOx pollution. The article also mentions the merger of Fiat Chrysler and the PSA Group and provides statements from Cummins and the EPA. Overall, the article presents factual information without significant bias or misleading content.

Noise Level: 8
Justification: The article provides detailed information about the proposed settlement between the Department of Justice and Cummins over alleged violations of the Clean Air Act and California law. It includes information about the use of software ‘defeat devices,’ the civil penalty, the required vehicle recall and repair program, and the measures Cummins must take to prevent future emissions cheating. The article also explains the impact of NOx pollution on air quality and human health. Overall, the article stays on topic, provides evidence and examples, and offers actionable insights into the settlement and its implications.

Financial Relevance: Yes
Financial Markets Impacted: The financial markets impacted by this news article include the automotive industry, specifically Cummins, Fiat Chrysler (now Stellantis), and their respective dealers.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: This news article pertains to financial topics as it discusses a proposed settlement between Cummins and the Department of Justice over alleged violations of the Clean Air Act and California law. The settlement involves a significant civil penalty and requires Cummins to remedy the violations, including a nationwide vehicle recall and repair program. While the article does not describe an extreme event, it highlights the financial impact on Cummins and its collaboration with Fiat Chrysler and its dealers.

Reported publicly: www.marketwatch.com