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Sep 14, 2009

TRUCKMAKERS' NEWS * USA - New EPA Rule Could Disrupt Navistar Engine Plan

A new federal regulation could keep Navistar International Corp. from offering customers a popular engine size for the company's heavy-duty trucks next year

Chicago,ILL,USA -Dow Jones/Capital (Greece), by Bob Tita -11 September 2009: ... The pending rule on stockpiling engines from the U.S. Environmental Protection Agency raises the potential for Navistar to be left without a 15-liter engine option until 2011. That would trigger a drop in the company's second-place share of the North American heavy-duty truck market since an estimated 60% of its heavy-duty trucks are sold with 15-liter engines... Only the 15-liter engines would be affected in this case because the new rule could prevent Navistar from stockpiling that size engine from Cummins Inc. while Navistar completes work on its own 15-liter engine.. . Navistar maintains it will be able to provide 15-liter engines next year to customers who want them and said the EPA has signed off on its engine-supply strategy... The Illinois company plans to rely on 15-liter engines built this year by Cummins until a 15-liter engine being developed by Navistar and Caterpillar Inc. is ready for sale near the end of 2010. Navistar expects to purchase enough Cummins engines by the end of the year to cover its anticipated demand for 15-liter engines in 2010... Navistar won't be able to offer customers the 2010 version of Cummins' 15-liter engine because it will have an emissions-reduction system that's incompatible with Navistar's trucks. Navistar's rivals - Freightliner, Paccar Inc. and Volvo - are all using the same reduction system as Cummins... The company is already at odds with the agency over its guidelines for complying with the 2010 emissions standards. Navistar has accused the EPA of disregarding its own procedures in certifying Selective Catalyst Reduction, which douses diesel exhaust with a mixture of urea and water to reduce nitrogen oxide emissions. Navistar is the only truck maker in North America not deploying the system. It's using a reduction technology that recirculates diesel exhaust through its engines. Navistar's objections are pending in the U.S. Court of Appeals... (Photo from roadtransport/big-lorry-blog (UK): The Cummins' ISX15 engine)


* Navistar CEO Peppered With Questions About Truck Engines

Chicago,ILL,USA -Dow Jones, by Bob Tita -15 Sept 2009: -- Truck and engine builder Navistar International Corp. expects to convince some of its customers next year to try smaller engines in their heavy-duty trucks to compensate for the company's precarious supply of 15-liter engines... Investors peppered Chief Executive Daniel Ustian with questions Tuesday in the wake of a proposed federal regulation that could block the company's plan to buy enough 15-liter engines from Cummins Inc. by the end of 2009 to cover next year's demand while Navistar completes work on its own 15-liter engine. About 60% of Navistar's heavy-duty trucks are purchased with 15-liter engines... The uncertainty over the performance and availability of Navistar's heavy-duty truck engines largely stems from the company's decision to deploy an emissions- reduction system that will not be compatible with engines built next year by Cummins, which has supplied most of Navistar's heavy-duty engines in the past... A pending rule from the U.S. Environmental Protection Agency appears to limit Navistar's ability to stockpile a year's worth of 15-liter engines built in 2009 by Cummins. Stricter federal standards on nitrogen oxide pollution have forced engine builders to add elaborate systems for treating diesel-engine exhaust beginning next year. Those components have added several thousand dollars to the cost of 2010 diesel engines...

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