Navistar International Corp. is abandoning its decade-long Class 8 diesel-truck-engine strategy and turning to rival and onetime supplier Cummins Inc. for a viable solution. The move marks a setback for the Lisle, Ill.-based Navistar, which had been bullish about exhaust-gas-recirculation, or EGR, its in-cylinder technology worth about $700 million in development costs since 2001. The truck engines still do not meet Environmental Protection Agency standards that went into effect in 2010.
Cummins, by contrast, uses selective-catalytic reduction (SCR), a clean-air technology that requires drivers to fill up a tank of urea periodically to neutralize nitrogen-oxides (NOx) in the tailpipe. The Columbus, Ind.-based firm has a nearly 40% heavy-duty truck-engine market share. Fuel economy gains of up to 5% are one reason why Cummins and other manufacturers have adopted SCR.