First off, we would love to have something other to write about than Navistar's self-destruction. Paccar - Fiat Powertrain, Daimler Trucks and divestments - something, anything that doesn't involve Navistar. But it's August, and this one cannot be ignored, so we're indebted to CL for the tip-off.
Have a look here, at this page from MWM's website. It describes - in some detail - MWM's NGD 9.3E Euro IV-compliant engine that, somewhat counter-intutively for a wholly-owned subsidiary of Navistar, boasts SCR technology. Not just any SCR technology, but high-performance SCR technology no less.
Let us refer back to Navistar's 30th July self-serving - and now clearly disingenous - filing in the Navistar v EPA lawsuit, and - admittedly with the benefit of hindsight - the rather unfortunate statement that "Skipping the rigors of rulemaking means EPA and CARB have put the public at risk by allowing SCR on the highway now when it may turn out later that the cure is worse than the disease." Gobbledygook or otherwise, Navistar clearly defines 'worse' by stating that engaging an SCR system releases compounds "which are carcinogenic or toxic in other ways."
What can we make of this? Navistar contends, in a very public forum, that SCR is inherently lethal. Yet it promotes, sells, and profits from that same life-ending technology in Latin America. Very One World of them, we might opine. Of course, maybe - in the sameway as water drains in a different direction in the southern hemisphere - SCR's lethality is in some part mitigated when it operates south of the Equator. We don't know.
The July 30th filing focusses on Navistar's accusation that the EPA intentionally withheld portions of the EPA's record that would support Navistar's position; of course, the filing makes no reference to what we would assume to be a body of research that Navistar itself should have by now developed--that supports the EPA's position. If MWM has developed SCR technology, then Navistar should have access to its records, and we presume that the EPA - and the attendant amici - will be requesting such from Navistar.
The logic here is inescapable: either SCR is lethal, and Navistar thus stands accused of knowingly marketing a deleterious technology, or that SCR is benign, and the current confrontation with the EPA is a tactic designed to delay and confuse the North American market. This is a zero sum situation, in that it can be one, or the other, but not both. How Navistar will maintain this position before the Court and maintain any shred of credibility is anyone's guess, but we'll be watching avidly - sorry for the rubbernecking.
Of course, on the bright side, we have to point out that, if the DC Circuit Court of Appeals finds Navistar's argument and strategy as unconvincing as we do, it will have access to SCR technology. Whether or not the same technology will reduce life expectancy would seem to be predicated as much by nationality as chemistry.
Comments (12)
Your posting Navistar's description of the SCR system it uses in Brazil to bolster your fixation that Navistar is a "Cycle of Despair" brings to light even more your own despair in trying to salvage your reputation as a "journalist".
From what I have read in all that you posted on this topic and from other sources, Navistar has never claimed taht SCR is bad in and of itself.
Navistar's only point is that the EPA changed its regulations in an illegal manner.
SCR is legal in Brazil.
SCR as it will be used by OEMs in the United States is illegal, asserts Navistar.
One may agree or disagree with Navistar's point. But the point itself is as lear as a cloudless sky at noon for any one who has the eyes and the mind to see it.
Posted by Shine | August 12, 2009 6:27 PM
Posted on August 12, 2009 18:27
Spiral. Not Cycle. It's Navistar's Spiral of Despair.
Just so that we're clear. Cycle assumes an upside.
Posted by Oliver Dixon
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August 12, 2009 6:32 PM
Posted on August 12, 2009 18:32
Now we know you, Shine, are either totally unaware of Navistar's tactics in the field or you are as disingenuous as Navistar itself. For just 1 example: Jim Hebe gave a passionate presentation to a group of customers in Canada this past Spring during which he claimed to have knowledge that SCR was toxic and that fleet technicians would be exposed to great harm if customers used SCR technology.
So which is it, shine ? Were you unaware of Mr. Hebe's tactics in Canada (that backfired as several key customers walked out on his presentation in protest of his outrageous claims)that indirectly incriminate Navistar for knowingly selling technology to customers that is hazardous ? Or are you trying to spin this mess that your hot-headed executives have gotten Navistar into by continually clouding and spinning a story so that customers will be so confused that they won't know what to do?
either way, shine, navistar is going to have some serious explaining to do to the judges AND its customers
Posted by Smart Guy | August 12, 2009 8:20 PM
Posted on August 12, 2009 20:20
I have tried to explain several times how I fit into all this. So let me be as clear as possible here and now so that hopefully we can have a more constructive dialogue rather than have recriminations:
1. My only interest in Navistar is as a stockholder. I have owned and still own its stock for many years. I have done well with it.
2. Other than asan individual stockholder of Navistar, I have never had any dealings with Navistar or any one else connected with it, be they executives or other employees, dealers, customers or what have you.
3. I am retired. I just sit in front of my computer and follow this company (a) because I find fascinanting how it moved from what was one of the largest industrial failures in this country to a long and painful turnaround and 0b) because I am making good money just doing nothing but being on the internet, the complete opposite of what I had to do while I was working to earn and save my money before I retired, some of which I invested in Navistar.
4. As to Jim Hebe, I don't know him or anything about him other than what I have learned from this board and from the rest of the web. I know that he was hired by Daimler with the publicly stated objective to drive Navistar out of Class 8;he almost made it; and then was fired by the people in Stuttgart during the last truck downturn when they had to take a $1.4 Billion write off. What impressed me about him that he did exactly what his German bosses wanted, namely, get Freightliner from last place in Class 8 to No. 1 and then they made him the sacrificial lamb.
At Navistar he is now the top salesman. My impression is that salesmen are noted for puffing their wares. Whatever he is doing specifically I don't know. If he is doing things wrong, it is the job of his superiors to hold him to account.
But I am glad that you called this to my attention. One of the main reasons I am on this glog is to find out any negatives about Navistar sooner rather than later, so that I can sell my stock sooner rather than later if things go wrong.
My challenging Dixon on this board enhances my understanding of Navistar's business and the risks it faces. And that is of enough value to me to warrant investing my time in this discusssion.
Posted by Shine | August 12, 2009 9:21 PM
Posted on August 12, 2009 21:21
Shine's claim, "From what I have read in all that you posted on this topic and from other sources, Navistar has never claimed taht(SIC) SCR is bad in and of itself." is a an outright lie.
Here is where he posted a link to an article...
http://messages.finance.yahoo.com/Business_%26_Finance/Investments/Stocks_%28A_to_Z%29/Stocks_N/threadview?bn=12322&tid=41599&mid=41929
In that article Nav senior management are quoted as saying, "Navistar executives, led by Truck Group President and CEO Dee Kapur, predicted that long-haul truckers will have trouble finding diesel exhaust fluid (DEF), that it probably will be expensive, that keeping tanks full will be a hassle, and that drivers will be exposed to dangerous fumes while handling it."
Of course I suppose it's possible he doesn't read all the stuff he puts out either
Posted by Doctor | August 14, 2009 10:43 AM
Posted on August 14, 2009 10:43
Somebody please document this discovery... it's only a matter of time before Navistar finds out and deletes the incriminating material from the website. Followed shortly by a lawsuit against this blog and it's readers.
Posted by CL | August 14, 2009 3:24 PM
Posted on August 14, 2009 15:24
http://www.vwtrucksandbuses.com/en/company_factory_mexico.aspx
Figure this one out for us Oliver. If MWM developed this medium/heavy-duty engine that uses SCR primarily for Volkswagen's truck business, and Volkswagen has a truck plant producing vehicles in Mexico, could it possibly be true that Navistar engines using SCR are driving around North America as we speak??? Gasp!
Posted by CL | August 26, 2009 4:08 PM
Posted on August 26, 2009 16:08
That would be a counter intuitive move wouldn't it?
Maybe something else that needs to be 'discussed' before the Judge.
Posted by Oliver Dixon
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August 26, 2009 4:12 PM
Posted on August 26, 2009 16:12
What about the trucks Navistar will produce for Ford through their Blue Diamond JV, won't they also be using the dangerous Urea in their Cummins ISB engines in the US and Canada ?
Posted by Doctor | August 27, 2009 10:28 AM
Posted on August 27, 2009 10:28
The ISB uses a lean NoX trap- something that hasn't been sorted out for HDDE's yet. How about Ford severing their relationship with NAV and developing it's own diesel engine for F-series trucks that uses SCR!
Posted by CL | August 31, 2009 1:52 PM
Posted on August 31, 2009 13:52
CL, there are no MWM-International 9.3L SCR engines operating in the US because there are no Volkwagen Constellations operating in the U.S., the truck that is the end-user for that engine (models 19.370 4x2 tractor, 25.370 6x2 tractor and 31.370 rigid to be specific). And while the Constellation is a nice truck that has done very well alongside the "Worker" in Brazil, it has not sold well in Mexico (so far anyway).
Posted by Kevin Scarbel | September 8, 2009 9:27 AM
Posted on September 8, 2009 09:27
I stated that I was suprised Navistar is selling a SCR-equipped engine in North America. North America includes Mexico. I know that VW does not sell heavy trucks in the US.
Posted by CL | September 8, 2009 5:59 PM
Posted on September 8, 2009 17:59