Caterpillar takes $2.55m hit for bad engines

Cat to recall engines that failed to meet emission standards

Cat has been fined $2.5m and ordered to recall 590,000 engines after breaking US emissions regulations.
Cat has been fined $2.5m and ordered to recall 590,000 engines after breaking US emissions regulations.

Caterpillar has been fined $2.55 million and ordered to recall engines after the US Environmental Protection Agency said that it had  failed to meet emission control standards under the nation's Clean Air Act.

The EPA said Caterpillar did not report emission controls or correctly label its engines built between 2001-2005. Cat produced 590,000 engines that were not equipped with emissions controls that met US Environmental Protection Agency tailpipe standards.The fine is in addition to the costs Caterpillar will face to rectify the issue - a sum that the company has not diclosed.

"The enforcement of vehicle emissions standards, labeling and reporting requirements is critical to protecting the air we breathe and ensuring that companies play by the rules,” said Cynthia Giles of the EPA’s Office of Enforcement and Compliance Assurance. The “settlement will protect public health and create a level playing field for companies that meet their environmental obligations.”

Caterpillar is alleged to have violated the Clean Air Act sellings engines that failed to have correct after-treatment devices, such as catalytic converters and diesel particulate filters. The EPA added that Cat had also improperly configured the engines’ fuel injector and fuel map settings, resulting in excess emissions of nitrogen oxides and particulate matter.

Cat spokesperson Bridget Young, said while it denies any wrongdoing, the company “fully cooperated” with the US government and made the settlement as it “represents a good faith effort between the parties to resolve their differences and avoid potentially lengthy litigation. 

She added: "Caterpillar is committed to following the terms of the decree.” 




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