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.