Class Action Suit Against Navistar

[Red Horse]

More trouble for Navistar. Several suits filed over failed EGR program. Allegation that Navistar misled investors to prop up stock price. As always a win-win for the legal community.

[2stacksuperdog]

Don't look like things are going to good with them lately.

[kscarbel]

There's a real tragedy taking place here. The man that single-handedly led Navistar down the wrong path is Dan Ustian. In a perfect world, any and all lawsuits would be brought against him. However, after running the company into the ground financially, he's allowed to quietly walk away with a $7.9 million golden parachute, and without paying any price for his errant actions. Ustian should be held fully accountable for his mistakes.

[james j neiweem]

All by design KS.

[Red Horse]

As for the lawsuits, I have to believe they will have an uphill fight. One of the plaintiffs is a union. Duh! While I always hoped Navistar would make it, was I skeptical on their approach? I certainly think so-at least I wasn't going to put a pile of money on their idea as the only thing I kept thinking as they went down their EGR road was..."hmmnn-what does Volvo, Cummins, Daimler know that Navistar doesn't".

Like I said, hoped they would make it but anyone who bet big on them should realistically have known what the odds were-or better yet, that the technical minds of these other companies had other ideas.

[kscarbel]

Navistar Sued by Shareholders for Fraud

April 10, 2013

A group of shareholders has filed a class-action lawsuit against Navistar International Corp. alleging that the OEM essentially lied to investors about its efforts to achieve compliance with EPA 2010 diesel-engine emissions rules.

The suit was filed in the U.S. District Court for the Northern District of Illinois on behalf of purchasers of common stock of Navistar International Corp. during the period between Nov. 3, 2010, and Aug. 1, 2012, inclusive.

Contacted by FleetOwner for comment on the lawsuit, Navistar’s manager of external communications Elissa Koc responded that “As a matter of policy, we do not comment on pending litigation.”

According to Ryan & Maniskas, LLP, the law firm that filed the suit, the complaint alleges that throughout that period of time, “the company [Navistar] issued materially false and misleading statements regarding the company’s business and financial prospects…. [and] the company misrepresented and/or failed to disclose that:

(1) Navistar’s attempted methods to achieve compliance with EPA guidelines in truck manufacturing had failed and Navistar would be forced to revise its plan to meet guidelines, incurring enormous costs to the company;

(2) Navistar did not have engines ready to meet the 2010 EPA standards; and

(3) Navistar’s filings with the Securities and Exchange Commission contained incomplete and misleading disclosures, including statements about the costs of recalls and details of various debts.

The plaintiffs’ law firm has launched a dedicated website where members of the class defined by the suit can obtain more information about joining the class action.

Last July, Navistar declared it was giving up its attempts to comply with diesel-emission regs by using exhaust-gas recirculation (EGR) technology alone as opposed to integrating selective catalytic reduction technology (SCR) as all its heavy-duty competitors had down ahead of the EPA 2010 rules.

As a result, by last September, Navistar had reached an agreement with Cummins by which it would again offer SCR-equipped Cummins engines in its International trucks.

Last month, CEO Troy Clarke told the Wall Street Journal that the company was considering closing engine plants. Navistar has three facilities building engines.

“We build engines in three places and none of them is fully utilized. You just can’t make any money doing that,” Clarke told the Journal in an interview at the Mid-America Trucking Show in Louisville, Ky. “Underutilized manufacturing capacity is just a cost and it is a cost that we don’t have to bear.”

[41180]

things are bad at navistar . ive seen several longtime international fleets switching to other brands. today i saw a scrap metal company that has had internationals for 30 years with a new mack . i also saw a mack cxu single axle oil delivery truck also from a former international fleet. also a milk hauler in vermont that always ran internationals just bought 3 kenworths and 2 macks. navistar deffianately made a big mistake.

[kscarbel]

I again have to say its really sad what is happening here. The man that indeed lied about EGR and other matterss, former CEO Dan Ustian, gets to walk free while the innocent employees under his arrogant reign now will suffer as a result of their company paying huge sums in legal fees and possibly settlements all because of Ustian.

Ustian ran the company into the ground while living in a fictional world about the current capabilities of EGR technology) now the company. Now adding pain to misery, just when the employees are trying to get the bildge pumped out, the results of Ustian's madness rear their ugly head again with this lawsuit.

Ustian should go to jail for the billions he cost Navistar. He's no better than Bernard Madoff.

The big question now is Ustian's right-hand man, GM car guy Troy Clarke, who is now running the show (just unbelieveable). He was right behind Ustian promoting EGR all the way up to last August when Ustian was finally shown the door (at the very least 2 years late) by an ignorant board.

[41180]

no doubt. i think anyone that knew even a little bit about egr in heavy duty diesel trucks would have decided to go with urea and less egr instead of more egr and no urea. it was a no brainer to me. and im just a driver. knowing all the problems mack had with there egr only engines i knew navistar was in trouble going with super egr.

[41180]

i like international. they made a good product priced cheap and the paystar models were heavy duty beasts of burden .

[farmer52]

I was hoping Navistar and Cat would develop a non-SCR engine. I think everyone "caved in" on SCR as an easy way to meet emissions regs and were tired of "spending $$". I saw a chart showing cost versus emissions reduction....the cost was ASTRONOMICAL compared to the VERY SMALL amount of emissions improvement. We can thank EPA for these regs and increased costs. I think the engine OEs will ultimately develop a non-SCR in the coming years. Prior to 2010, the OEs were VERY CLOSE to meeting emissions without SCR. I think the best engines (reliability, emissions, smokeless, and fuel economy) were the early 2000 engines.

[Red Horse]

things are bad at navistar . ive seen several longtime international fleets switching to other brands. today i saw a scrap metal company that has had internationals for 30 years with a new mack . i also saw a mack cxu single axle oil delivery truck also from a former international fleet. also a milk hauler in vermont that always ran internationals just bought 3 kenworths and 2 macks. navistar deffianately made a big mistake.

McDermontt?

[kscarbel]

I was hoping Navistar and Cat would develop a non-SCR engine. I think everyone "caved in" on SCR as an easy way to meet emissions regs and were tired of "spending $$". I saw a chart showing cost versus emissions reduction....the cost was ASTRONOMICAL compared to the VERY SMALL amount of emissions improvement. We can thank EPA for these regs and increased costs. I think the engine OEs will ultimately develop a non-SCR in the coming years. Prior to 2010, the OEs were VERY CLOSE to meeting emissions without SCR. I think the best engines (reliability, emissions, smokeless, and fuel economy) were the early 2000 engines.

SCR is the best way with "current available technology" to satisfy EPA2010 requirements. The Europeans have been ahead of us on SCR and already confirmed this.

Massive EGR (EGR levels from 35% to 50%) results in massive heat dissipaton headaches. For one thing, require larger radiatiors and inherently massive truck redesigning to accomodate these larger cooling packages.

SCR is far more convenient. Adding a small AdBlue (urea) tank is easily done. And the engine can breath, resulting in better performance and fuel economy.

Higher injection pressures is promising. Extreme high pressure (common rail) injection helps prevent PM levels from increasing with Massive EGR, so that oil change intervals won’t shorten.

With that in mind, Scania has reached Euro-6 (extremely close to EPA2010) using ultra high pressure injection in excess of 2400bar with EGR/SCR and a VGT, but without the need for a DPF, resulting in a significant savings in purchase price and truck weight, and simplification of the truck design.

[bulldogboy]

McDermontt?

Saw a McDermott milk tanker out of Enosburg Falls, VT in MA this week with a Peterbilt tractor. They were a long time IH user.

bulldogboy

[RFCDrum]

Your better off with SCR. The EGR set up with the weird exhaust and super heated temps at least now you can have a regular looking exhaust system again. It is a shame with International I hope they can recover because I'm still a fan of cornbinders. All I heard was horror stories of the recent stuff up to this point.

[theakerstwo]

I am not a IHC lover but i hope they pull thru cause i am tired of hearing about work places going broke.

[Red Horse]

I am not a IHC lover but i hope they pull thru cause i am tired of hearing about work places going broke.

Amen! Only two US class 8 builders left-International and Paccar. Hopefully Navistar survives and maybe Ford makes up their mind and gets back into vocational class 8's when 750 production moves from the Bluediamond JV in Mexico to the Ford plant at Avon Lake Ohio.

[bullhusk]

Just get the F&%KIN big Goverment off of our Auto, Trucking and every other MFG. in this Country!!! That's where the core of the problem lies!! As long as Uncle Sam get's there money thats all they care about!
BULLHUSK