“Dieselgate” is not over, and Technical Compliance is more important than ever as the recent USD 1.7 billion agreement in principle (Agreement) between the U.S. diesel engine manufacturer Cummins Inc. (Cummins) and the U.S. Department of Justice (DOJ) demonstrates.

The Facts

On December 22, 2023, the DOJ announced an Agreement with Cummins according to which Cummins will pay a record $1.675 billion penalty to settle alleged violations of the U.S. Clean Air Act. According to the DOJ statement, the violations stem from the alleged installation of emissions defeat devices in 630,000 RAM pickup trucks, built from 2013 to 2019, that include parts and software to allegedly bypass or defeat emission sensors designed to ensure compliance with applicable emission limits. The DOJ concluded that Cummins also allegedly used emission control devices in another 330,000 RAMs from 2019 to 2023. The Cummins Agreement represents the largest civil penalty ever secured under the Clean Air Act and the second largest environmental penalty ever secured. By comparison, in 2017, Volkswagen AG paid a civil penalty of $1.5 billion on top of a criminal penalty of $2.8 billion in the US.

The Significance

The Cummins Agreement demonstrates the ongoing importance of ensuring that all products comply with all critical laws and regulations, whether those laws and regulations are emissions related or not. We strongly advice that companies ensure such compliance by means of a robust and efficient Technical Compliance Management System (tCMS) that is tailored to the industry-, company-, and product-specific risks and needs.

You may find the official press release here: https://www.justice.gov/opa/pr/statement-attorney-general-merrick-garland-agreement-principle-cummins-settle-alleged