Navistar CEO Ustian steps down

Daniel Ustian has stepped down as President, Chairman and CEO of Navistar, the US truck and engine manufacturer announced on Monday.

Navistar’s Board of Directors has appointed Lewis Campbell, former Chairman, President, and CEO of $12 billion business Textron, Executive Chairman of the Board of Directors and interim CEO as his replacement.

Reportedly, investors have been urging this move since the company reported a second quarter loss of $172 million. Shares in Navistar have fallen 39 per cent in value since the beginning of 2012 and Navistar are being investigated by the US Securities and Exchange Commission after withdrawing their 2012 full year earnings forecast.

Analysts have put the blame on the company’s failure to meet the all-powerful US EPA’s exhaust emission standards for its Maxxforce engines as the major factor in the company’s problems. 

Ustian had been re-assuring customers and investors for the past two years that the EPA’s 2010 standards could be met without going to SCR (urea injection) technology but Navistar have been paying a fine for every non-complying engine they have been producing, a situation that eventually had to be untenable.

Navistar’s recent announcement that it had secured arrangements with Cummins to provide SCR parts and technology was seen then as an admission of defeat in their quest to handle emissions “in cylinder” rather than using the proven “after treatment” adopted by almost every other heavy duty diesel manufacturer in the world.

Ustian, 62, worked at Navistar for 37 years.

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