LISLE, Ill. -- The US Environmental Protection Agency (EPA) has almost doubled fines that Navistar will have to pay for engines that don’t meet the agency’s emissions standards, according to a report from Reuters. The penalty for each non-compliant engine now sits at $3,775, up from the $1,919 Navistar had previously been paying.
The announcement comes just weeks after Navistar opted to do an about-face with its preferred engine technology after failing to meet EPA standards. Selective catalytic reduction (SCR) systems have been the technology of choice for meeting emissions standards in recent years, with Navistar the lone holdout with its use of advanced exhaust gas recirculation (A-EGR). Navistar is in the process of transitioning to a combination of A-EGR and SCR (SCR) under its new In Cylinder Technology Plus (ICT+) emissions plan.
Navistar’s failure to meet EPA standards has also prompted a shake-up in its senior management ranks, with former company president and CEO Daniel Ustian announcing his retirement on Monday. Former Textron chief Lewis Campbell has been appointed as interim CEO, while Troy A. Clarke, previously president of truck and engine operations at Navistar, has been promoted to president and COO.
For his part, Clarke said the company was “pleased” with the EPA’s final rule for nonconformance penalties. “We can now provide our dealers and customers with clarity and certainty as we transition to our clean engine technology and look forward to utilizing the Final Rule as needed,” he said, adding that the rule’s implementation would have “no impact on our vehicles previously certified by the EPA under the Interim NCP Rule.”