Navistar International's not beating 'em, so it looks like it's going to join 'em. The truckmaker, which has been pushing its exhaust-gas recirculation process as a cheaper, simpler emissions-treatment method than the selective catalytic reduction method used by its competitors, will likely switch to SCR to better appease the Environmental Protection Agency, the Wall Street Journal reported, citing people familiar with the process that weren't identified.
Navistar's use of EGR has caused potential customers to question whether the truckmaker's engines could meet EPA emissions standards established in 2010, and recent warranty claims, which have led to two straight quarterly losses, have further fueled questions about Navistar and its emissions-treatment process, according to the Journal.
Shares of Navistar, whose spokesman says is in discussions with the EPA, are down almost 30 percent this year. Last month, Reuters, citing a Financial Times Deutschland report, said Volkswagen was looking into buying a stake in Navistar to better compete with German vehicle-making rival Daimler. VW has ownership stakes in both truckmakers MAN and Scania.
Heavy-duty truck emissions have been topical because of the potential to make major gains in emissions reduction from such fuel-guzzling engines. Last August, the Obama Administration set the first-ever fuel-economy guidelines for heavy-duty trucks, mandating semi trucks to cut fuel use by 20 percent by 2018.