EPA investigating Navistar over engine dates

| February 16, 2012

The U.S. Environmental Protection Agency alleges that thousands of Navistar Inc. engines sold as pre-2010 models were actually assembled during 2010 and are subject to fines up to $37,500 per violation for not conforming to 2010 emissions standards.

Navistar disputes the EPA charge, says spokesman Steve Schrier. “We firmly believe our 2010 transition was appropriate, and we will continue our discussions and cooperation with the agency on this matter,” he says.

After the agency analyzed data Navistar submitted in response to EPA’s Nov. 3, 2010, information request, says a Jan. 30, 2012, letter to Navistar, it discovered Navistar claimed a 2009 model year for more than 7,600 heavy-duty diesel engines produced after Dec. 31, 2009. If fined at the maximum level, the total would exceed $285 million.

Avondale Partners’ analyst Kristine Kubacki said an investigation could take a long time and that fines in these cases “vary widely.”

The letter, published on the trucking blog Commercial Motor, says EPA is investigating Navistar. An EPA spokeswoman said the agency does not discuss ongoing enforcement matters.

The letter says the engines were partially assembled in 2009. Financial analyst Stephen Volkmann, quoted by Reuters news service, said he believes that completion of engine assembly after an EPA deadline has been “standard industry practice,” so the EPA scrutiny could extend beyond Navistar.

In a separate action, Navistar learned in late January that it could face EPA penalties of about $1,900 per engine if its heavy-duty engines do not conform to 2010 model year nitrogen emissions standards.

Navistar diesel engines emit more grams of nitrogen oxide than their competitors’ engines. But because Navistar exceeded the performance parameters set for earlier emissions reduction regulations, the company was awarded emissions credits by the EPA that allow production to continue.

The California Air Resources Board had issued a public letter to Navistar saying the company’s emissions credits for the MaxxForce 13 would expire Feb. 29. However, Navistar says it has submitted to EPA its MaxxForce 13 diesel engine, refined with an air management system and electronic engine controls, for compliance testing.

The company’s MaxxForce 11 and MaxxForce 15 engines were not included in CARB’s announcement and will continue to be sold using their existing EPA credits, said a Navistar spokesman.

“The bottom line is that Navistar will sell engines in 2012 that are fully certified in all 50 states,” said Jack Allen, president of Navistar’s Engine Group, during a Feb. 1 stock analysts’ meeting.

Navistar diesel engines use an in-cylinder exhaust gas recirculation technology to reduce exhaust emissions. Its North American heavy-duty engine competitors use selective catalytic reduction aftertreatment technology to meet the required emissions levels.

  • Mike Rust

    Let’s just let the Mexicans in & finish off the American long haul trucking indutry. At the same time the can pollute more bringing in tank full of higher sulpher diesel than we can burn. Plus they will cut the rates to nothing. Then the American Co’s can hire Mexicans to drive all the trucks. So much for jobs, hello 3rd world country. As for making toll foads, just more money to pilfer. In NJ the highest expense on the Jersey Pike is the workers & the benefits pdogram. The lowest expense is the road maintenance. I saw this on a chart over a year ago. So, more pollution & congestion because of toll booths Maybe foreigners owning the roads. More expense we can’t recoup because of stupid trucking Co’s that won’t raise the rates & pay a living wage. Need I say more?

  • Thomas Dolph

    Every fricking agency that has anything to do with trucking has their hands in our wallet…America is changing fast and not for the better. We better vote the f’ing Liberals out this November, or we are doomed. God, please bless America

  • rob burke

    Hitler is taking over the U.S. lets just let the answer to nobody EPA run more jobs and companies out of business, We need to reelect this president who just says yes EPA do whatever you want under my watch and we will have no jobs or companies in this country, all of us truckers can go on welfare like he wants, we cant afford his health care program and now the Epa who has already killed cat engines is trying to kill navistar , Who’s next and with thiese regulations trucks get more expensive to poduce so Who can afford to buy the new ones ,We the truckers need to shut down for a week and see how the country likes it and maybe they will listen to the people ,WE NEED TO TAKE BACK OUR COUNTRY FROM THE COMMUNIST LEADERS WE HAVE IN WASHINGTON AND OUR STATE CAPITALS SOON OR WE WILL ALL BE UNEMPLOYEED

  • Bret McClary

    We need to change all of them in wash. and take away the power that the EPA has so we can start making a living. let us start useing the same fule the mexs are useing and maybe we’ll have a chance.

  • ed barch

    can you say alternative fuel? this trip i pd. $3.48/gal on 2/15 in indiana & now pd. $4.02/gal in idaho on 2/23/12. that is .50cent increase in 8 days!! lets cut emission, have the same power & maybe better mileage using something else instead of diesel & this problem might just go away because the less we use the more they charge!!!!

  • Bad Oscar

    Its absolutely ridiculous to fine this company over a date if the engines meet the Standard, but if the issue is to END the American built truck engine then its working. To not be able to buy a CAT engine is bad enough I agree. If Truckers dont get these Non trucking PANELS off our backs well be doing deliverys out of NISSANs and HINOs. Its time Truckers stood up to these Panles, Boards and NO EXPERIENCE in Trucking regulators who are ruining our Business, and the suppliers who have built the best products in the world. IVE HAD ENOUGH…If we switch to LNG they will then start exporting it and raise the prices, if they would keep the NG in this country we could drive these rigs without all the EPA Mandates and save millions, or EARN millions…But theyll find a way to ruin that too with regulations and NON TRUCKING types who sit on Panels and Boards and tell US what to do

  • http://overdriveonline.com/channel19 Todd Dills

    We hear you, everyone. Ed, Navistar itself has launched a big natural-gas power initiative, estimating that by end of 2013 all of their truck will be available with LNG or CNG engines — infrastructure for fueling is rolling out, too. If you missed those stories: http://www.overdriveonline.com/navistar-led-partnership-plans-natural-gas-initiative/

  • Brad Coddington

    Amen to that Thomas Get people in the white house that actually understand what making money is all about not people that just keep regulating people out of business

  • Jonathan Rutledge

    You know,We overthrew out government in 1776 for far far less than crap like this.

  • John Williams

    how about the joint partnership between the EPA & the labor backed green coalition groups who want to ban the owner-operator trucker from moving any freight from the nations ports or inland rail terminals? this is another fine example of a one sided green agenda. it’s not about clean air but instead unionizing the work force by getting rid of the owner-operator status which stands in the teamsters way. using the environment to carry this out is disgusting. i think we’ve all had enough of this green corruption which is destroying our way of life. opening the door for more corruption in the name of green must stop. i drive an older model 1987 Pete which I will not give up a perfectly good truck to buy a new one for these phoney do-good’rs who have their own twisted agenda..

  • http://overdriveonline.com/channel19 tdills

    John, ATA and others have very recently requested Supreme Court review of that particular “joint partnership.” In case you missed it: http://www.overdriveonline.com/groups-want-high-court-review-of-port-case/

  • Tim Winkler

    Well there folks the story says it all.
    First thing is the EPA only wants money, they could care less about the specs. The real truth is the new motors are designed to fail at 400,000 to 500,000 miles, ask any engineer. Also a 1987 mechanical 400 cummind with a manual fuel pump actually runs cleaner than a new truck, along with the 5.86 miles per gallon is also what they don’t want you to know, it’s all about the money and any way thaey think that theyt can appease the pulblic without doing anything and collect money for it well it’s the dream boat of gold for them… THIS IS THE TRUTH

  • Mark Hayward

    Good Idea park all trucks for two weeks about 1 month before the next Presidential election.

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