Thousands Of Trucks Recalled As Part Of 'Historic' $2 Billion Settlement

More than 600,000 Ram pickup trucks will be recalled under a proposed $2 billion settlement over allegations that diesel engine maker Cummins Inc. broke U.S. and California law, officials announced.

As part of the settlement, Cummins would pay a $1.675 billion civil penalty — the largest ever assessed in a Clean Air Act case — and spend over $325 million to remedy violations involving software defeat devices used to circumvent emissions testing and certification requirements, according to the U.S. Department of Justice.

“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," U.S. Attorney General Merrick Garland said in a news release.

Under the settlement, Cummins must complete a nationwide recall to repair and replace the engine control software in over 600,000 Ram 2500 and Ram 3500 trucks, according to the department.

The settlement requires Cummins to work with Fiat Chrysler and its dealers on a recall and repair program that will remove all defeat devices from the affected 2013-19 Ram trucks for free and bring the vehicles into compliance, authorities said. Cummins must fix at least 85 percent of the 2013-19 trucks equipped with the devices within three years, according to the department.

As part of the settlement, Cummins will also extend the warranty period for certain parts in the repaired vehicles, fund and perform projects to mitigate excess ozone-creating nitrogen oxides emitted from the vehicles, and use new internal procedures designed to prevent future emissions cheating, the news release said.

For California, Cummins will make a lump sum payment to the state's air resources board of over $175 million to pay for mitigation efforts that reduce nitrogen oxide emissions in the state, according to the department.

Nitrogen dioxide formed by such emissions can aggravate respiratory diseases, particularly asthma, and may contribute to asthma development in children, authorities said.

“Cummins knowingly harmed people’s health and our environment when they skirted state emissions tests and requirements,” California Attorney General Rob Bonta said in the news release.

The settlement was reached in December, with new details released Wednesday.

The affected trucks were made by Stellantis, which deferred comment on the case to Cummins. The engine manufacturer has denied allegations made by the government and is not admitting liability, according to court documents.

Cummins said in a statement that Wednesday's actions do not involve any more financial commitments than those announced in December.

"We are looking forward to obtaining certainty as we conclude this lengthy matter and continue to deliver on our mission of powering a more prosperous world," the statement said.

The agencies involved in the case include the federal justice department, the U.S. Environmental Protection Agency, the state air resources board and Bonta’s office.

The EPA discovered defeat devices in the engines through testing at the agency’s National Vehicle and Fuel Emissions Laboratory, according to the department.

The Associated Press contributed to this story.