Daniel C. Ustian, former chairman and CEO of Navistar International, had promoted a unique diesel exhaust emissions solution. But the Securities and Exchange Commission has charged in a suit that he knew it couldn’t work, with subsequent losses to company investors.
The Securities and Exchange Commission on Thursday charged Navistar International Corp. with misleading investors about its development of an advanced technology truck engine that could be certified to meet U.S. emission standards.
Although its market share is not increasing as rapidly as it had expected, Navistar has made significant progress in cutting its warranty spend and other costs, and as a result posted a positive income number in its fiscal third quarter, despite lower sales than anticipated.
Navistar has launched a new program for late-model used International trucks called Diamond Renewed, offering a comprehensive inspection and mechanical reconditioning process.
UPDATED -- The complaint alleges that Navistar actively concealed that its 2008-2013 model trucks, equipped with the MaxxForce Advanced exhaust gas recirculation diesel engines, contained a defective emission system that caused the trucks to suddenly break down.
Lawyers for trucking companies have filed lawsuits in three states against the parent company of International Trucks, claiming Navistar failed to disclose known defects and problems with its EPA 2010 MaxxForce engines.
While most of the early problems have been engineered out of the exhaust gas recirculation systems on today’s clean diesel engines, corroded coolers, stuck valves and other problems still plague owners of older equipment.
In May, Navistar International Corp. named Bill Kozek, a 26-year veteran of Paccar, as president of Navistar's North America Truck and Parts business. He succeeded Jack Allen, who was promoted to chief operating officer. Kozek spoke with HDT Editor in Chief Deborah Lockridge shortly after the company announced disappointing fourth-quarter earnings. Here's the Q&A.
The U.S. Environmental Protection Agency has lost a fight with truck engine makers over an earlier decision allowing Navistar International to sell earlier models of its engines with exhaust gas recirculation technology, even though they did not meet federal emissions rules.
More than 28% of all trucks registered in the United States are now equipped with advanced new technology clean diesel engines, according to new data compiled by R.L. Polk and Company for the Diesel Technology Forum.
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