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Navistar's EPA 10 Pricing

We'll let this one speak for itself.

Navistar Announces 2010 Emissions Pricing on International® Trucks

Navistar (NYSE:NAV) has announced 2010-compliant MaxxForce® Advanced EGR engine technology will increase International® truck prices $6,000-$8,000, depending on engine model.

  • Vehicles with mid-range diesel engines, including the MaxxForce® 7, MaxxForce® DT, MaxxForce® 9 and MaxxForce® 10, will increase by $6,000.
  • Vehicles with heavy-duty diesel engines, including the MaxxForce® 11 and MaxxForce® 13, will increase by $8,000.

Increases will come in the form of a non-discountable surcharge applied to each vehicle's base price.

To meet the 2010 EPA emissions requirements for diesel engines, International trucks will be powered by MaxxForce® Advanced EGR (exhaust gas recirculation) engines with proven technologies including:

Advancements in fuel injection: The next-generation fuel injection systems are capable of delivering fuel into the cylinder multiple times per cycle and at higher pressures. Utilization of one or more pre- and post-injections along with the main injection event means combustion can take place over a longer period and be more complete, resulting in less creation of NOx emissions.

Improved air intake management: The advanced EGR system utilizes dual turbochargers. The first, smaller turbocharger spins up immediately to provide boost at lower engine speeds, while the second, larger turbo provides maximum power at higher engine RPMs. The company also placed an inter-stage cooler between the turbochargers to help reduce air temperature going into the cylinders and allow more air to be packed into the large second stage turbo for maximum power at high engine speeds. Combining these features with the increased EGR rate means the combustion in the cylinder occurs slower and at a lower temperature, generating less NOx.

Improved electronic calibration: Engine controllers previously utilized pre-programmed lookup table to determine the fuel-air mixture to burn. Increases in computing power allow the engine controller to continuously calculate the optimum mix to achieve maximum power and efficiency in many different situations.

Proprietary combustion technology: The redesigned combustion bowl combines with the higher fuel injection pressure to break the fuel up into a finer mist spread more evenly inside the cylinder, resulting in a more complete and cleaner burn.

"Meeting stricter EPA emissions levels in 2010, unfortunately, comes with a higher price," said Jack Allen, president, Navistar North American Truck Group. "Though, we have given our best effort to minimize costs related to the robust design and development of 2010 MaxxForce engines to ensure pricing is manageable for our customers, prices will increase commensurate with our technology path and our effort to remain competitive in the marketplace."

MaxxForce Advanced EGR engines do not require the use of urea or the addition of bulky on-vehicle urea storage tanks, converters, heaters, and the additional electronics required by SCR systems. MaxxForce Advanced EGR engines offer a customer-friendly alternative to SCR that will also deliver lower total operating costs for customers.

"We believe that International trucks powered by MaxxForce Advanced EGR engines will offer the industry's only truly no-hassle approach to 2010 emissions," added Allen. "Our simple and straightforward solution places the burden of emissions compliance on us, not the customer."


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Comments (5)

Shine:

In its press release, Navistar asserts that its EGR will "deliver total lower operating costs for customers" than SCR.

The article posted below reports that for Class 8, Navistar's EGR engines will cost $1,600 than the price announced by others for their SCR eninges.

If both claims are in fact true, the question that I would appreciate getting an answer to is:

Why would a truck buyer not chose to buy an EGR rather than an SCR truck?


http://www.landlinemag.com/todays_news/Daily/2009/July09/072709/072809-06.htm

Shine:

I am trying to answer my own question by doing research. Here is what Paccar's CEO said at the analysts' conference yesterday re SCR:




http://www.landlinemag.com/Archives/2009/june09/Bottom_Line/emission_impossible.htm

Smart Guy:

1. If Navistar's pricing is $8,000 higher than EPA07, then how can they say there isn't any additional hardware ?

2. If I were Navistar, I'd be very worried if their EPA10 pricing is only $1,600 lower than Volvo's. Volvo's fuel economy is going to get much better in 2010 while Navistar's fuel economy is going to get much worse. That will easily pay back the $1,600 gap in less than a year.

3. It's been quite amusing watching Navistar's spiral of despair from. They have played against all of the odds and the cracks in the foundation are starting to show. Suing the EPA ? You've got to be kidding me. How about Non-conformance penalties ? The word on the street is that Navistar is going to get slammed with significant NCPs.

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