Cummins to Face $2.04 Billion Charge in Settlement with U.S. Regulators

Cummins, the engine manufacturer based in Columbus, Ind., has revealed that it anticipates incurring a charge of $2.04 billion as part of a settlement to address allegations made by U.S. regulators. The accusations pertain to certain engines, specifically those used in pick-up trucks, which were deemed non-compliant with the emissions-certification and compliance process.

This resolution, expected to be recorded in the fourth quarter, relates to approximately 1 million pick-up truck applications within the United States. Cummins had initiated a review of this matter back in 2019 and has since taken proactive measures, such as recalling model year 2019 RAM 2500 and 3500 trucks, as well as initiating a recall for model years 2013 through 2018 RAM 2500 and 3500 trucks. These recalls have amounted to a cost of approximately $59 million for the company.

Cummins emphasizes its full cooperation with relevant regulators, including the Environmental Protection Agency and the California Air Resources Board. It explicitly denies any indication of bad faith and does not admit to any wrongdoing associated with the allegations.