Navistar Recalls 9,500 ProStar and TranStar Trucks

[kscarbel]

Transport Topics / 6/14/2013

Navistar Inc. told the National Highway Traffic Safety Administration it is recalling 9,578 ProStar and TranStar trucks because of problems with S-cam tubes on steer-axle brake assemblies made by Meritor Inc.

NHTSA posted a letter saying the trucks were made from August 2011 through July 2012 and sold in the United States, Canada and into export markets.

“The brake S-cam tube bracket assemblies on steer axles may exhibit fractures between the wing bracket and the tube steel when mounted to stamped spiders,” said a letter from R.L. Van Laar, Navistar’s compliance manager. A brake spider is the foundation for brake assemblies.

Navistar said it will notify truck owners by mail by Aug. 23.

[kscarbel]

Truck recall roils Navistar stock price

Fleet Owner / June 20, 2013

Shares of Navistar International Corp. (NAV) were buffeted today by the recall of over 7,000 late-model ProStar and TranStar Class 8 trucks that might have a braking-related issue.

At one point this morning, Navistar’s stock was trading at $26.92-- roughly 10% off its opening price.

The truck recall was first issued last November, but was expanded earlier this month to include 1,000 more units. The total number of trucks affected now stands at 7, 756.

Navistar was also hit with bad financial news last week. Standard & Poor's (S&P) Ratings Services downgraded its credit from B to B- and maintained a “negative outlook” for the OEM. S&P also adjusted Navistar's “business risk profile” from “weak” to vulnerable.”

S&P is “cautious about the liquidity of the company and expects that Navistar will generate wider losses in future.” Navistar’s shares had slipped “around 9.1%” after the company announced its fiscal 2013 2Q earnings on June 11th.

The recall notice posted by the National Highway Traffic Safety Administration (NHSTSA) affects “certain model year 2012-2013 International brand ProStar and TranStar commercial trucks, manufactured from August 01, 2011, through July 10, 2012, and equipped with front brake linings listed as feature codes 0504501, 0504504, or 04EWM.”

NHTSA said the recall was issued because S-Cam tube bracket assemblies on the steer axles of these trucks may fracture.

“Brake assembly fractures may result in an inoperative brake on the affected wheel,” stated the agency. “This will cause the vehicle to pull to one side unexpectedly during braking and/or increase the stopping distance. Either result may increase the risk of a vehicle crash.”

According to NHTSA, Navistar has notified all affected owners about the defect and the “remedy is expected to be available in August 2013.” That will involve dealers replacing the S-Cam tube bracket assemblies, free of charge.