White House Clears EPA Rule to Allow Navistar Engine Sales

The White House approved a regulation that could allow Navistar Inc. to resume selling heavy-duty diesel engines that violate 2010 emissions standards while paying a penalty.

Following the approval by the Office of Management and Budget, the Environmental Protection Agency must publish the rule in the Federal Register before it can take effect. EPA did not return a call asking when rule would be published.

The text of the rule is not public, and OMB did not provide any information about the rule on its regulatory docket except to note that it approved the rule Wednesday after making unspecified changes to it.

The rule would replace an “interim” rule that allowed Navistar to sell noncompliant engines starting in January while paying a $1,919 fine. After some Navistar competitors sued, a federal court overturned that rule in June, saying EPA skipped the proper procedures in issuing it.

View the original article here

BREAKING: Navistar CEO steps down; interim replacement named

LISLE, Ill. -- Navistar has appointed Lewis B. Campbell, former chairman, president, and CEO of Textron, as executive chairman of the board of directors and interim CEO for the company. Daniel C. Ustian has informed the board that he is retiring as chairman, president, and CEO, effective immediately. He is concurrently leaving the Board of Directors. The company also announced that it has promoted Troy A. Clarke, currently president of truck and engine operations at Navistar, to the position of president and COO of Navistar.

The announcement comes shortly after the company’s decision to change gears with its engine platform, adding selective catalytic reduction exhaust aftertreatment to its engine line after originally committing itself to achieving EPA2010 emissions standards using only advanced exhaust gas recirculation.

"Lewis Campbell is a high-calibre executive who brings to Navistar deep and broad strategic, technical and operational skills and a proven track record of leadership with global industrial companies – including 24 years of experience in product design, engineering and manufacturing in General Motors' automotive, trucking and component businesses and seventeen years in senior leadership positions at Textron including more than 10 years as chairman, President and CEO.  We are very pleased to have him join the team," said Michael N. Hammes, Navistar's independent lead director. 

"We are also pleased to promote Troy Clarke to president and COO in recognition of the significant contributions he has made in challenging assignments since joining the company in early 2010. Our board and management are aligned around a clear path forward, and we are confident that under the leadership of Lewis and Troy, Navistar will make continuing progress in executing its near-term strategic priorities, driving growth and creating shareholder value."

Hammes added: "We appreciate Dan's many contributions and accomplishments during his 37-year career at Navistar. Under his leadership, Navistar's revenue grew from approximately $7.7 billion to approximately $14 billion as the company significantly expanded its global reach and diversified its product portfolio, including the addition of Navistar's military business. We thank Dan for his dedicated service and wish him all the best in the future."

"I am honoured to join the board of Navistar in the new role of executive chairman and to serve as CEO," Campbell said. "I look forward to working with Navistar's strong leadership team and talented employees, as we continue to take steps to provide dealers and customers with best-in-class products, enhance the company's competitive position, and build on Navistar's platform for generating profitable growth. At the appropriate time, we will conduct a search for a long-term CEO, which will include internal and external candidates."

Campbell, 66, served as chairman of Textron, a $12 billion publicly traded industrial company, from 1999 to 2010, CEO from 1998 to 2009 and president for most of the period from 1994 to 2009.  Prior to joining Textron, Campbell spent 24 years at General Motors, where he served in a variety of roles including vice-president and general manager for the company’s Flint Automotive Division for Buick/Oldsmobile/Cadillac, as well as vice-president and general manager for GMC Truck. Campbell holds a B.S. in mechanical engineering from Duke University.

Campbell currently serves on the Board of Directors of Bristol-Myers Squibb Company, where he has been lead independent director since 2008.  He is also a member of the board of directors of Sensata Technologies Holding N.V. and the board of trustees of Noblis, a not-for-profit science, technology and strategy organization.

Prior to his appointment as president of truck and engine operations at Navistar, Clarke, 57, served as president of the company's Asia Pacific operations. Clarke joined Navistar in January 2010 as senior vice-president of strategic initiatives.  Previously, Clarke spent more than 35 years with General Motors where he served in a variety of roles, including president of General Motors North America, president and managing director of GM's Mexico operation, vice-president of manufacturing and labour relations, and president of GM Asia Pacific. He has a B.S. in mechanical engineering from General Motors Institute, as well as an M.B.A. from the University of Michigan.

View the original article here

Navistar Gets Approval for China Engine Venture

Chinese government regulators have approved a joint engine-making venture between Navistar International Corp. and Chinese truck maker Anhui Jianghuai Automobile Co. Ltd., Navistar said.

Originally announced in September 2010, the venture “sets the stage for global export opportunities of JAC’s light-, medium- and heavy-duty commercial trucks,” Navistar said in a statement.

The venture will focus on meeting the emerging needs of the Chinese commercial truck market by providing JAC with access to Navistar’s Euro IV and Euro V compliant technology.

The two companies plan to formally submit a commercial truck joint-venture application to the Chinese government later this fall, Navistar said.

View the original article here

UPDATED: Navistar to combine advanced EGR with SCR in 2013

LISLE, Ill. -- Navistar announced this morning it is working with the EPA and CARB to transition to a combination of advanced exhaust gas recirculation (A-EGR) and selective catalytic reduction (SCR).

The announcement comes after Navistar was unable to achieve EPA compliance at 0.2 grams NOx using only advanced EGR. It is calling the new approach ICT+, for In-Cylinder Technology Plus.

“Our distinctive solution will leverage the investment and advancement we’ve made in clean engine technology while providing immediate certainty for our customers, dealers, employees and investors,” said Daniel C. Ustian, Navistar chairman, president and CEO. “We have made tremendous progress with in-cylinder technology and with the introduction of ICT+ our goal is to offer the world’s cleanest and most fuel efficient diesel engine - benefiting both our customers and the environment for years to come.”

The company says its new approach will provide a clear path to compliance with the impending GHG standards for 2014-2017 model year tractors.

Navistar said it will continue building and shipping current model trucks in all vehicle classes while it develops its new ICT+ solution.

“We’ve shared our new technology path with the EPA and California Air Resources Board (CARB), and both agencies are encouraged by our plans,” Ustian said. “We will continue to work with the agencies to ensure that our customers receive uninterrupted deliveries in all 50 states during this transition.”

In a conference call to provide further information, Ustian said the base engine will remain the same as today’s MaxxForce. He said further advancements in Navistar’s in-cylinder technology focusing on fuel, air and controls, combined with urea-based exhaust aftertreatment, will both provide improvements in fuel economy.

Navistar president Troy Clarke said the company has trucks running in simulated environments right now using the new technology.

“I can say from what we’ve seen, we’re pretty excited,” he said.

Since the first ICT+ engines won’t be certified until early 2013, there remain questions about how the company will continue to build and supply engines until then.

“The first 13-litre engine will go into production in early 2013. I know that leaves the question with many of you about how we manage the transition between today and then,” Clarke acknowledged. “Of course we will utilize a combination of emissions credits we’ve accumulated through early achievement of NOx standards in years past and we will also use NCPs (non-conformance penalties) in some states to extend the credits for use in states that don’t accept them at this time.”

Clarke also said that now that Navistar has unveiled an acceptable compliance strategy, the EPA and CARB are more willing to work with the company to find “solutions for circumstances that could disrupt production or sales during the transition period.”

Finally, Clarke said, “Today’s announcement is not about going back. It’s not about backing up, it’s about going forward.” He vowed Navistar’s new ICT+ solution will provide the “cleanest” and “most efficient” engines going forward.

Officials did not take any questions during the conference call.

View the original article here