Navistar International Corp. is set to announce “operational changes” during an investor webinar on Friday morning (July 6) amid multiple reports the company will be ditching its advanced exhaust-gas recirculation (EGR) technology for meeting EPA 2010 emissions requirements. The announcement was made in a filing with the Securities and Exchange Commission (SEC) on Monday, Fleet Owner magazine reported.
“Navistar International Corp. (the “company”) announced today that it will present a live webcast on Friday, July 6, to provide an update to various operational matters related to the company,” the announcement said. Speakers will include Daniel C. Ustian, chairman, president and CEO, A. J. Cederoth, executive vice president & CFO, and other company leaders, it said.
The announcement preceded by mere hours a report in the Wall Street Journal that said the company planned to announce it is switching its emissions technology to selective catalytic reduction (SCR) to meet EPA 2010. This report followed one from Friday afternoon that said the company is considering purchasing engines from Cummins, which uses SCR.
Steve Schrier, manager-corporate communications, did not confirm nor deny the Wall Street Journal report in response to Fleet Owner questions, but did note the Friday webinar would address “various operational matters.”
Navistar is the parent company of RV maker Monaco RV LLC, which uses the EGR technology in its diesel-powered motorhomes.
Navistar’s most recent financials showed an unexpected $172 million loss in the second quarter, including significant costs related to warranty claims. Since then, the company stock has fallen 28%.
Following the earnings announcement, the U.S. Court of Appeals for the District of Columbia Circuit ruled in favor of Navistar competitors, including Cummins Inc.; Daimler Trucks North America and its subsidiary Detroit Diesel; and by sister OEMs Mack Trucks and Volvo Trucks North America, in a suit against the EPA. The EPA allowed Navistar to pay non-conformance penalties (NCPs) on diesel engines that did not meet the 0.20 grams of NOx 2010 standards. EPA fast-tracked the interim rule to authorize penalties, bypassing traditional regulatory process, the suit claimed. EPA agreed with Navistar that if EPA did not let it pay NCPs, it would have to end production of its Class 8 engines and trucks.
“In January 2012, EPA promulgated an interim final rule (IFR) to permit manufacturers of heavy-duty diesel engines to pay nonconformance penalties (NCPs) in exchange for the right to sell noncompliant engines,” stated circuit Judge Janice Rogers Brown in her written opinion.
“EPA took this action without providing formal notice or an opportunity for comment, invoking the ‘good cause’ exception provided in the Administrative Procedure Act (APA),” Judge Brown continued. “Because we find that none of the statutory criteria for ‘good cause’ are satisfied, we vacate the IFR.”
Navistar submitted its 13L engine to EPA for 2010 approval at the 0.20 grams of NOx level earlier this year, but no formal announcement regarding the progress of that has been made.
On June 29, the Chicago Daily Herald reported on a report from OTR Global that said that Navistar may offer Cummins engines, possibly as early as 2013. Karen Denning, a Navistar spokeswoman, told the Daily Herald the company doesn’t respond to “rumor and speculation.”
The report did not specify whether the Cummins engines would be sold alongside Navistar engines or in place of Navistar engines.
Editor’s Note: Monaco RV LLC President Kay Toolson and Navistar North American Truck Group President Jack Allen have issued a response to a pro-SCR letter distributed last week by several motorhome builders utilizing Freightliner Custom Chassis Corp. diesel chassis. Both SCR, which Freightliner employs, and EGR diesel-powered platforms, which Navistar has developed, are a technological response to the Environmental Protection Agency’s more stringent 2010 diesel emissions standards. Their letter follows.
THE BEST 2010 EMISSIONS SOLUTION IS ADVANCED EGR
To all Recreation Vehicle dealers (US and Canada):
Why are so many RV manufacturers pointing at Monaco RV? Think they are worried? They should be! EGR is a proven technology and the latest advancement in emissions control for the next generation of diesel engines. SCR is not.
We were shocked and disappointed by an open letter that was recently signed by seven RV manufacturers, claiming SCR as the best 2010 emissions solution for customers. We disagree. Advanced EGR is the best solution for customers because it is as simple as turning the key. At Monaco RV, we’ve never been about following the crowd – we build products based on what’s right for our customers.
In their letter, there are claims that are either outright lies or don’t make sense.
- Exhaust Gas Recirculation (EGR) is a proven technology that has been in use for years. NavistaEGR to the next level. It is a simple, no‐hassle solution.
- Navistar has delivered over 20,000 Advanced EGR‐equipped vehicles, including Monaco RVs.
EGR is Simple
- Advanced EGR doesn’t require additional components or complexity to operate a motorhome. Our customers won’t need to change anything about the way they go RVing.
- EGR doesn’t require “DEF” (urea) to run.
- MaxxForce engines in Monaco RV products are fuel‐efficient, quiet and powerful. Their letter claims that SCR elivers better fuel economy. Compared to what? Themselves?
The only thing the group’s SCR letter was right about is that Monaco RV is the only manufacturer to offer its customers Maxxforce Advanced EGR in an integrated coach product. Which makes you wonder: Why would seven manufacturers feel the need to write an open letter making a case for SCR? What are they worried about?
The answer to this question is anyone’s guess. But we can tell you why we chose the Advanced EGR solution. It’s simple: It reduces NOx inside the engine and it requires absolutely no changes to the way our customers go RVing. In other words, we put the customers first by utilizing a technological solution that is right for their needs.
And while we’re on the subject, here are some things you may want to consider about SCR and the required Diesel Exhaust Fluid (DEF):
- Running out of DEF causes the engine to derate and eventually shut down.
- At low RPM levels, such as at idle, SCR doesn’t work, creating higher, pre2007standard level emissions. Think about coach owners sitting in campgrounds or in traffic. This is a step backward for clean air.
- DEF freezes at 12 degrees F and storage isn’t recommended above 77 degrees F.
- DEF (urea) is a hazardous chemical.
- DEF and related components add to the complexity and cost of operating motorhomes.
Don’t believe us? Read the engine OEM owners’ manuals for details.
We ask that you experience for yourself the next generation of engine and RV technology by visiting our display at the upcoming RVIA show (booth #3200) and get more details at our website: www.monacorv.com/2010Emissions.
Kay Toolson, President, Monaco RV, LLC Jack Allen, President, Navistar North American Truck Group