Engine maker Cummins faces landmark penalties for environmental violations
- Engine maker Cummins to recall 600,000 Ram trucks in emissions-cheating scandal
- Settlement requires Cummins to remedy environmental damage caused by illegal software
- Cummins to pay over $2 billion in penalties, the largest ever under the Clean Air Act
- Trucks equipped with defeat devices and emissions-control software that wasn’t properly reported
- Cummins denies allegations and is not admitting liability
Engine maker Cummins Inc. has reached a settlement with federal and California authorities regarding an emissions-cheating scandal involving 600,000 Ram trucks. The settlement requires Cummins to recall the trucks and remedy the environmental damage caused by illegal software. The company has agreed to pay over $2 billion in penalties, making it the largest penalty ever secured under the Clean Air Act. The trucks were equipped with defeat devices and emissions-control software that wasn’t properly reported. Cummins denies the allegations and is not admitting liability.
Public Companies: Cummins Inc. (CMI), Stellantis (STLA), Volkswagen (VOW), Fiat Chrysler (FCAU), Daimler (DAI), Mercedes-Benz Group (MBG)
Private Companies:
Key People: Rob Bonta (California Attorney General), Merrick B. Garland (U.S. Attorney General), Jacqueline Klopp (Director of the Center for Sustainable Urban Development at the Columbia Climate School)
Factuality Level: 8
Justification: The article provides information about a settlement between Cummins Inc. and federal and California authorities regarding illegal software that allowed the company to bypass diesel-emissions tests. It includes details about the settlement, the penalties imposed on Cummins, and the number of trucks that will be recalled. The article also mentions previous emissions-cheating cases involving other automakers. Overall, the article provides factual information without significant bias or misleading content.
Noise Level: 3
Justification: The article provides relevant information about Cummins’ recall of 600,000 Ram trucks due to illegal software that allowed it to bypass diesel-emissions tests. It also mentions the settlement reached with federal and California authorities, the penalties imposed on Cummins, and the environmental damage caused. However, the article contains some filler content, such as information about other emissions-cheating cases involving the auto industry, which is not directly related to the Cummins recall.
Financial Relevance: Yes
Financial Markets Impacted: The recall of 600,000 Ram trucks by Cummins Inc. may impact the financial performance of both Cummins and Stellantis, the manufacturer of the trucks.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses a financial event, which is the recall of 600,000 Ram trucks by Cummins Inc. as part of a settlement with federal and California authorities. This event may have financial implications for Cummins and Stellantis. However, there is no mention of an extreme event in the article.
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