Navistar realigns management, working with EPA on EGR

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Updated Jun 8, 2012

Navistar International Corp. on Thursday, June 7, announced a management realignment, released its second-quarter financial results and acknowledged that discussions with the U.S. Environmental Protection Agency for its exhaust gas recirculation-only emissions engine certification are ongoing. The Lisle, Ill.-based company reported a loss of $172 million for the second quarter ended April 30. After pre-tax adjustments, various charges and an income tax valuation allowance related to Canadian deferred tax assets, Navistar’s adjusted loss was $137 million.

“Certainly, our first-half performance was unacceptable,” says Daniel Ustian, Navistar chairman, president and chief executive officer. “It included a warranty reserve to repair early 2010 and 2011 vehicles. We were also affected by speculation surrounding our engine certification for our Class 8 engine, which is why we are working tirelessly with the U.S. EPA to get resolution.” Ustian said that going forward, Navistar has identified a path for delivering profits in the second half of 2012, including management changes.

Troy Clarke, current president of Navistar Asia Pacific, will assume responsibility for all operations in the newly-created role of president, Truck and Engine, under which the Truck, Engine, Parts, Product Development and Purchasing organizations will be integrated. Jack Allen will become president of North America Truck and Parts, an expansion of his current role, and Engine Group President Eric Tech will expand his role to become president of Global Truck and Engine, responsible for business operations outside of North America.

The changes take effect July 1 following board approval.