Navistar still under fire from competing truck, engine makers

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Updated Oct 24, 2013

ProStar squareThough Navistar won a court ruling last week that dismissed a case brought by rival truck and engine makers about the validity of the compliance certificates issued to the company, the court battle appears to be far from over

Navistar competitors Daimler Trucks North America, Mack Trucks and Volvo Group North America were back in court Tuesday to argue that the U.S. Environmental violated its own regulations when it issued engine emissions certificates to Navistar. 

Court dismisses challenge to Navistar’s use of emissions credits

Daimler, Mack and Volvo are saying again that the EPA wrongly granted Navistar permission to manufacture and sell non-compliant engines if they paid a fine. 

The three complainants say their rival benefitted from the “certificates of conformity” at their expense. Daimler, Mack and Volvo say they pumped millions of dollars each into developing engines that met the tightening federal emissions regulations while Navistar was able to sell its non-compliant engines with the $1,919 fine per truck. 

A D.C. Circuit court dismissed Friday, Oct. 18, a case that asked that Navistar’s emissions certificates be voided.

Navistar posts $247 million 3Q loss, cutting 500 jobs

The EPA said that “substantial work” was required for Navistar to meet the emissions limit by looking back to when the agency issued its 2001 standard. Based on that standard and Navistar’s inability to meet the standards, the agency granted the certificates. 

At issue is the definition of “substantial work.” 

Daimler and its peers claim the term refers only to the future efforts to meet regulatory standards. And, since Navistar has implemented Cummins SCR technology in its trucks, meeting the standard didn’t require “substantial work” on the company’s part, Handman argued.

The three judges did not reach a conclusion Tuesday.

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