Fiat Chrysler, Cummins spar over costs of diesel emission recall

By David Shepardson

WASHINGTON Fiat Chrysler Automobiles NV (FCHA.MI) and engine manufacturer Cummins Inc (CMI.N) 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…

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