Engine Manufacturer Agrees to Historic Fine for Environmental Violations

An engine manufacturer has reached a settlement to pay a penalty of over $1.67 billion to resolve allegations of tampering with pickup truck engines to evade emissions tests. The U.S. Justice Department disclosed that the company breached the Clear Air Act by utilizing defeat devices on a large number of pickup truck engines, resulting in excessive emission of nitrogen oxides. Attorney General Merrick B. Garland emphasized the harmful impact of these actions on public health, citing the potential for respiratory issues and infections due to increased pollutants. The engine manufacturer, while denying any wrongdoing, confirmed its cooperation with regulators and expressed its commitment to resolving the matter. As a result of the agreement, the company foresees an additional charge of about $2.4 billion in the fourth quarter of 2023 to address related issues, including ongoing recalls of pickup trucks in the United States. The settlement remains pending final approvals and involves the U.S. and State of California. Following this development, shares of the engine manufacturer experienced a decline in the stock market. Stellantis, the maker of the affected vehicles, refrained from commenting on the matter. This incident comes amidst other legal actions, including charges against a Texas-based developer and a settlement by a prominent adult website to address sex trafficking allegations.