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Navistar talks progress with "Drive to Deliver" plan

The Trucker Staff

3/20/2013

LOUISVILLE, Ky. – Today at the Mid-America Trucking Show in Louisville, Navistar International Corporation introduced its aggressive action plan “Drive to Deliver” and reported its cash balance higher than expected, said Troy Clarke, Navistar president and COO. The company also showcased its initial production build of the International ProStar truck equipped with MaxxForce 13 with SCR due out in April.

“We know we needed to make key decisions to drive the health of our company,” Clarke said.

In 2010, Navistar was alone with its exhaust gas recirculation (EGR) solution. All other North American heavy-duty truck and engine makers opted for the selective catalytic reduction (SCR), which were compliant with the EPA. Navistar was not fully compliant with its MaxxForce engine family regarding the 2010 NOx standard, instead relying on EPA credits earned from implementing other standards ahead of schedule.

Clarke said the company has made a variety of management improvements including a quality vice president position at a senior management level.

“We are delivering on a plan and heading in the right direction,” Clarke said.

Navistar showcased its portfolio of on-highway vehicles featuring SCR after-treatment technology, building on the momentum the company has created over the past several months. The theme of the trade show floor is ‘Drive to Deliver,’ and emphasizes the company’s commitment to International Truck customers.

“The theme ‘Drive to Deliver’ originally started as an internal mantra,” said Mike Cerilli, vice president, North America truck marketing, Navistar. “As the company continues to gain momentum, we are reaffirming our commitment to our customers to deliver the highest quality products with unparalleled service and support.”

On the trade show floor, visitors experienced International’s ‘Drive to Deliver’ through interactive product displays, an area dedicated to fleet support solutions for full-service and self-maintainer customers, and a section devoted to celebrating customers. They also had an opportunity to see Project Horizon, a forward-looking design concept focused on delivering new levels of efficiency, creating unparalleled driver comfort and leveraging the smartest technologies available, all in an effort to better help fleets and drivers prepare for an ever-changing industry, Clarke said.

“We’ve long been considered an industry leader in aerodynamics and fuel efficiency, but we’re continuing to push the envelope,” said Cerilli. “We’re evaluating every component on our vehicles, all in an effort to reduce operating costs and drive more profit to our customers’ bottom line. And this is just the beginning.”

Clarke added the company’s “cash balance is really ahead of where we thought we’d be at this particular time.”

The past quarter produced a net income of about $1 billion. The third quarter 2012 net income was $84 million.

“We did what we said we are going to do,” Clarke said. “We’re not satisfied where we are at yet, but we’re getting there.”

The ProStar equipped with a MaxxForce 13 with SCR “signals yet another key milestone in our operating plan and further demonstrates our commitment to delivering value for our customers," said Jack Allen, president North America Truck and Parts, Navistar.

ProStar with MaxxForce 13 with SCR offers fleets and drivers the efficient power of a big bore engine with lighter weight components to maximize payload. Its design and compacted graphite iron (CGI) block construction make it one of the lightest weight 13-liter engines in the industry. Horsepower options range from 365 to 475 with 1,250-1,700 lb,-ft. of torque and the engine delivers excellent fuel economy and performance.

The MaxxForce 13 features the proven Cummins Emission Solutions after-treatment system and includes numerous improvements to the turbochargers, EGR valves, high and low temperature coolers and exhaust bellows. The electronic control module recalibration to the SCR system will help the engine deliver more advanced fuel economy and improved overall power and throttle response.

With more than 70,000 vehicles on the road, the ProStar with MaxxForce 13 combination has proven durability. During the implementation of SCR, the vehicles underwent rigorous testing and validation, accumulating nearly six million miles through a diverse range of climates, altitudes and conditions.

The remaining lineup of International heavy-duty truck models will transition to SCR-based clean engine technology in a phased launch throughout the year.

"The marriage of the best performing Class 8 tractor on the market, with our new, SCR-based MaxxForce 13 creates a winning combination in our portfolio," said Allen. "Providing drivers and fleets with a wide-breadth of SCR-based engine solutions is just one of the ways we're ensuring that customers get a complete lineup of reliable, high-quality products they can drive with confidence."

This announcement comes just four months after the first ProStar equipped with the Cummins ISX15 with SCR rolled off the production line. Despite aggressive quality testing requirements and a quick timetable, the Cummins ISX15 hit all key rollout dates ahead of schedule. More than 1,000 ProStars with ISX15 units have been shipped to date. Initial customer feedback has been very positive, with many fleets noting its superior power characteristics, quiet ride and excellent fuel economy.

The Trucker staff can be reached to comment on this article at editor@thetrucker.com.

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