The EPA and the California Air Resources Board have demanded a recall of 130,000 pickup trucks. Both manufacturers are sparring over who will bear the cost of the recall.
Shedding a new light into the court case involving Fiat Chrysler Automobiles NV and Cummins Inc., documents filed by Cummins in court state the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board have demanded a recall of Ram pickup trucks, manufactured in 2013 through 2015, equipped with 6.7L Cummins diesel engines which when accumulated with excessive moisture content can lead to selective deactivation of the catalyst reduction system, thus causing excessive emission of nitrogen oxide.
Both companies are now fighting over the cost of the recall which is estimated to be over $200 million for 130,000 Ram pickup trucks.
According to a court room transcript, John Berg, Fiat Chrysler’s lawyer has told the court on September 23 that the Detroit recall is likely to cost at least $200 million. Although the auto manufacturer is agreeable and willing to cooperate in the recall, it is however not willing to shoulder the entire burden on its own.
“What we are not willing to do is bear the cost of it,” said Berg.
He went on to add that Fiat Chrysler has sued Cummins to recover the $60 million it has spent, to date, repairing 42,000 trucks at its own expense.
The dispute between the two erupted this August when Fiat Chrysler sued Cummins in U.S. District Court in Detroit for breach of contract, saying it not only failed to provide working parts, but also failed to indemnify it.
Not one to take things lying down, Cummins countersued, stating Fiat Chrysler would not cooperate in the recall “for one reason – money”. In the process, Fiat Chrysler was “holding both Cummins and its own customers hostage.”
According to Berg, when the emissions system fails, a warning light is displayed. Following this if the vehicle isn’t fixed, it will go into a “limp mode” wherein although it will be drivable, the speed will be very slow.
On Monday, Jon Mills, Cummins’ spokesman stated that the dispute between the two companies related primarily to the financial aspect of the recall. Currently both companies “are working collaboratively to resolve an issue with a third party after treatment system purchased by (Fiat Chrysler) as quickly as possible on behalf of our customers.”
Similarly, Mike Palese, Fiat Chrysler’s spokesman also stated on Monday that the company “remains committed to working with Cummins to ensure that any necessary repairs are carried out effectively and efficiently.”
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