Navistar Moving Past Emissions Debacle

Navistar International Corp. won’t apply SCR to its 15-litre MaxxForce engine and will instead lean on Cummins Inc. for its high-horsepower requirements, Jim Hebe, senior vice-president of North American sales operations confirmed during a press briefing.

It’s the first official confirmation that the company won’t pursue its own 15L engine once it uses up its remaining emissions credits and can no longer pay non-conformance penalties for engines that don’t meet EPA2010 emissions standards, Truck News reports.

“Our intention is to continue to build them as long as we can and then phase into the Cummins ISX15,” said Hebe.

“It’s a shame, it’s a great engine.”

Hebe said anticipated demand for the 15-litre MaxxForce would not support the cost of further developing the engine and applying SCR exhaust after treatment to it.

International will focus on its higher volume MaxxForce 13 engine, which will combine selective catalytic reduction (SCR) exhaust after treatment with Navistar’s in-cylinder solution to form what it has dubbed In-Cylinder Technology Plus (ICT+).

Officials indicated Navistar is already building International trucks with Cummins engines—about 300 ProStar+s to date—and that the existing Memorandum of Understanding between the two companies will soon become an official supply agreement.

Navistar emerges from emissions struggle

Hebe provided some insight into what went wrong with Navistar’s EGR-only emissions strategy. He still believes pursuing a non-SCR emissions solution was the right call, however he admitted it was a mistake for the company to put all its eggs in one basket.

“Two decisions were made in this company in August 2008,” Hebe said.

“One was to go EGR and the other was to go it alone. The decision to go with EGR was not the wrong decision, but the decision to go it alone was the wrong decision. What really, in the end, created the biggest issue was not EGR, it was that we ran out of time and we ran out of credits. If we had stuck with a partner in the engine business, we would have had more time to develop our in-cylinder solution and probably at the end of the day, we would’ve gotten that. That’s water over the dam now.”

“We’re headed in the right direction, with the right strategy in terms of engines,” Hebe said.

“They’re (dealers) confident in the financial position of the company and these guys are willing to do whatever it takes to help this company be successful.”

When asked by Truck News how the manufacturer will stay cost-competitive, having absorbed the cost of researching, developing and implementing two very costly technologies (advanced-EGR and now SCR), Hebe admitted it will be a concern for Navistar in the near term but emphasized the costs won’t be passed onto customers.

Within about two years, Hebe said, many of the costlier components of the company’s advanced-EGR system can be removed from the equation.

“Theoretically, we should be able to eliminate some of the costs incurred in the engine technology when we go to SCR,” Hebe explained.

“A lot of the stuff that was instrumental in advanced-EGR will go away. For the first year, we’ll be challenged and our customers are not going to bear the cost of that. Our intent is to do what we have to do to keep ourselves competitive in the marketplace until we can eliminate a lot of the expensive componentry required for advanced-EGR.”

Details

Navistar

Navistar International’s not beating ‘em, so it looks like it’s going to join ‘em.

Navistar International Corporation is a holding company whose subsidiaries and affiliates produce International brand commercial and military trucks, MaxxForce brand diesel engines, IC Bus brand school and commercial buses, Navistar RV (formerly Monaco) brands of recreational vehicles, and Workhorse brand chassis for motorhomes and step vans.

The company also provides truck and diesel engine service parts. Another affiliate offers financing services.

Website: navistar.com

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