Navistar is switching gears as it attempts to meet 2010 diesel emissions regulations.
The company is moving away from its controversial exhaust gas recirculation (EGR) solution and into the selective catalytic reduction (SCR) lane, joining the rest of the OEs.
The Wall Street Journal reported the news today, stating that the decision was made by Navistar’s new president, Troy Clarke.
Navistar was the only diesel engine manufacturer to use the EGR approach in its efforts to meet U.S. Environmental Protection Agency’s 2010 regulations. Navistar failed to create an engine certified by the EPA, placing it in a precarious position not only competitively, but also with the U.S. federal government.
The Wall Street Journal noted that Navistar has been hemorrhaging cash and losing market share recently, and while the move to SCR might be a good decision, it will need to put more capital to development and engineering of an EPA certified engine.