WASHINGTON Oct 10 Fiat Chrysler Automobiles NV
and engine manufacturer Cummins Inc are
fighting over the $200 million estimated cost for a recall of
130,000 Ram pickup trucks equipped with Cummins diesel engines
that could exceed U.S. pollution limits.
The U.S. Environmental Protection Agency and California Air
Resources Board have demanded a recall of 2013 through 2015
model year Ram 2500 pickup trucks with 6.7L Cummins diesel
engines because moisture can lead to the deactivation of the
selective catalyst reduction system, causing excess nitrogen
oxide emissions, Cummins said in court documents that have not
been previously reported.
A lawyer for Fiat Chrysler, John Berg, said at a Sept. 23
court hearing in Detroit the recall could cost $200 million,
according to a transcript. The auto maker is willing to
cooperate in the recall, Berg said. "What we are not willing to
do is bear the cost of it," he said.
Fiat Chrysler has sued Cummins to recover the $60 million it
has spent to date repairing 42,000 trucks at its own expense, he
The legal dispute between Fiat Chrysler and Cummins began in
August when Fiat Chrysler sued the engine maker in U.S. District
Court in Detroit for breach of contract, saying the Indiana
engine company failed to provide working parts and would not
Cummins countersued, saying Fiat Chrysler would not
cooperate in the recall "for one reason - money" and said the
automaker was "holding both Cummins and its own customers
When the emissions system fails, the warning light goes on
and if the vehicle isn't fixed soon the vehicles go into "limp
mode" that allow them to only be driven very slowly, Berg said.
Cummins spokesman Jon Mills said Monday the two companies
have a dispute regarding the financial responsibility for the
recall, but "are working collaboratively to resolve an issue
with a third party aftertreatment system purchased by (Fiat
Chrysler) as quickly as possible on behalf of our customers."
Fiat Chrysler spokesman Mike Palese said Monday the
automaker "remains committed to working with Cummins to ensure
that any necessary repairs are carried out effectively and
Cummins wants the recall to start next month in California
and eight other states, and plans to complete the action early
next year, according to court documents.
Cummins said in a court filing the recall will reduce the
fuel economy of vehicles by a "negligible" amount - from 14.6
miles per gallon to 14.4 miles per gallon.
(Reporting by David Shepardson; Editing by Andrew Hay)