Navistar considers change of emissions strategy in wake of certification problems

Christopher Goodfellow - 4 July 2012

Navistar is expected to announce that it is backing away from its Exhaust Gas Recirculation (EGR) only EPA 2010 strategy, according to the Wall Street Journal.

The implementation of Selective Catalytic Reduction (SCR) technology may increase the per-unit cost of its vehicles and take some time to implement. Its current EPA 2010 technology surcharge, the additional cost of meeting the environmental standards, is 14% lower than its nearest competitor at just under $8,000 per unit, according to Automobile Dealers Association and American Truck Dealers. Any new emissions strategy would have to undergo certification by the EPA, which could take between two to three months, the Wall Street Journal said.

Navistar is the only heavy-duty truck manufacturer not to use SCR in its heavy-duty truck models and has had difficulty certifying its GVWR >14,000 pounds engine family at the EPA 2010 NOx standard without the use of emissions credits.

The manufacturer submitted an EGR-only 0.2 g/bhp-hr NOx emissions engine in February 2012. The company said in its recently released quarterly results that talks on certification are "ongoing".

In January 2012, the California Air Resources Board (CARB) had said the manufacturer's emissions credits would run out by the end of February. The EPA implemented an interim rule to permit the manufacturer to continue producing engines with a nonconformance penalty, and Navistar incurred $10 million in fines for the production of non-EPA 2010 compliant engines, according to its second quarter results.

In June, the U.S. Court of Appeals threw out the interim rule. The case was brought by Navistar's competitors.

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