Navitar Shares Plunged After The Court Tossed EPA Rulling

Tuesday, June 12, 2012 Print Email

The rule of paying charges of non compliant engines had struck down today by U.S. court of appealing and after that the shares of Navistar Corp. are plunged out.

Well, it is not good news for Navistar. The makers of engines and Lisle-based truck have to pay heavy charges to continue selling their engines those are not certified by federal air pollution standards according to an interim regulation issued by agency of Environmental Pollution.

Navistar should pay attention on certifying its engines from federal environmental pollution agency without paying any charges on non affiliated engines. And this should be done before the engines go out of selling range. Navistar have only two options, one is to stop producing the non compliant engines and the second one is to alter the technology that it uses to produce engines and to adopt that technology used by other same industries. Shares of Navistar are going down to 11.6% which is actually a $25.39 in day trade period.

For all truck makers, the emission of nitrogen oxide out from the heavy engines was recommended by EPA to cut down to 95%. This rule was issued in 2001 and was applied till 2010. Several industries adopted the technology of selective catalytic reduction to reduce the emissions. The new tech of reducing the nitrogen oxide emission form truck engines was used by Navistar named exhaust gas recirculation.
But, still it seems that it is impossible to meet with the standards of EPA. It has been issued the allowance of banked credit of emission in order to sell its engines.

The EPA need to announce its final decisions and rulings to generate and regulate the comments and important notices. These comments or rules are not designed to choose the voluntary industrial truck makers, but, not even to select and applied the technologies to make the engines compliant against EPA regulations.

These rules and regulations will surely effect the marketing situation of those engines or even those trucks contain that engine as well. So it should be encouraged to apply the rules, but, some resources also must be pool out in order to allow some marketing benefits to truck makers.

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