In the underbelly of the engine business, where brake dust and oil mix with corporate back-slapping, Tenneco Inc. lurks as Cummins’ much-lauded supplier of ride control and emissions parts. They won Cummins’ Global Direct Supplier of the Year, 2022 – proof that grease and graft often go hand in glove. But peel back the accolades and you’ll find a catalogue of misconduct so tangled it makes diesel smoke look healthy.
Antitrust Price-Fixing Scandal
Tenneco helped rig exhaust-system pricing across the industry. In 2017 the US Department of Justice and the European Commission closed in on a cartel that skimmed excessive profits from every vehicle they touched. Tenneco set aside a staggering US $132 million to settle civil suits, admitting nothing criminal but leaving car buyers on the hook.
Shareholder Deception Lawsuits
Back in the early ’90s, investors accused Tenneco executives of spinning a rosy financial story while the engine stalled. Five class-action suits alleged misleading statements between April 1990 and December 1991. Tenneco quietly shelled out US $65 million in provisions to end the litigation.
Hexavalent Chromium Worker Exposure
At its Smithville, Tennessee plant, Tenneco’s cast-iron greed poured cancer-causing hexavalent chromium dust into the air. In 2017 TOSHA cited them for 20 serious violations after workers discovered they – and their families – were breathing toxic waste. Other plant-level chemical-exposure suits followed, with employees awarded damages after enduring burns and cancer scares.
Staying Put in Russia
When Western firms fled Russia in 2022, Tenneco dug in. Yale University’s tracker labelled them “Digging In” for refusing to withdraw or scale back operations amid the invasion of Ukraine. Ethics and principle were left at the border.
It’s little wonder Cummins keeps tripping over its own moral treadmill when yet another component supplier plays by its own rules – with cartel fines and Russian operations chalked up as routine line items. Partnering with Tenneco isn’t just a technical choice. You’d think it was an ethical crash waiting to happen. What’s emerging looks less like a crash – and more like alignment.
Lee Thompson
Founder, The Cummins Accountability Project
Sources
• Chicago Business: Tenneco Sets Aside US $132 Million for Lawsuits
• New York Times: Tenneco Suit Settlement
• NewsChannel 5: Workers Worried They Put Their Kids at Risk
• WLHR: Tenneco Employees Settle Civil Suit
• Yale Climate Connections: Companies Held Accountable for Russia War
• LinkedIn: Tenneco Recognized by Cummins as 2022 Global Direct Supplier of the Year