Navistar Agrees to Pay $52M Fine and Destroy Engines to Settle Clean Air Act Violations
Chicago, IL — Navistar Inc. has agreed to pay a massive $52 million fine and destroy older engines in a new settlement with the U.S. Department of Justice (DOJ).
In 2015, the DOJ filed suit against Navistar, now a subsidiary of Volkswagen AG’s Traton Group, alleging that in 2010, after lower emission standards went into effect, the company introduced into commerce 7,749 on‑highway Heavy-Duty Diesel Engines (HDDE) that were not certified and did not meet the lower emission standards set forth by the Environmental Protection Agency (EPA) and the Clean Air Act.
Navistar had marketed and sold the engines installed in its international-branded trucks as being EPA-certified model year 2009 engines even though it completed all manufacturing and assembling processes for the engines in 2010.
The court held that the engines were in fact model year 2010 engines and required to be covered by a 2010 certificate of conformity demonstrating compliance with the lower emission requirements.
Under the terms of the settlement, Navistar will pay a civil penalty of $52 million, forfeit its current account of oxides of nitrogen (NOx) credits, and purchase and destroy enough older diesel engines to prevent 10,000 tons of future NOx emissions.
Also, according to the DOJ, the settlement requires Navistar to “structure its mitigation of NOx emissions through one or more programs approved by EPA that will take into consideration geographic diversity and benefits to communities that are overburdened by air pollution.”
Navistar is required to report back to the EPA on its implementation of the program to “ensure compliance with the environmental justice and geographic distribution requirements in the consent decree.”
The engine maker responded to the announcement of the settlement.
“Navistar is pleased to put this legacy issue behind us and eager to focus on transportation solutions for the future,” the company said.
This latest expensive settlement is another in a series of costly ones.
Most notably in 2019, Navistar agreed to pay $135 million to settle a class action suit stemming from the failure of its MaxxForce-branded engines.
The now-defunct engine line allegedly contained defects resulting in millions of dollars in warranty claims.
In the settlement in that case, Navistar denied “all claims…wrongdoing, liability or damage of any kind” and that the engine maker “acted improperly or wrongfully in any way.”