The truck and engine manufacturer Navistar has become involved in its third lawsuit this summer regarding defects in their MaxxForce Advanced EGR diesel engines. This lawsuit is the first federal class-action filed against Navistar and was pushed forward by the Washington-California based trucking company Par 4 Transportation. Par 4 hopes to make Navistar provide compensation to every trucking company that has been subject to the company’s faulty engines and false advertising. Complaints brought in the suit against Navistar include breach of implied warranty, breach of expressed warranty, violation of consumer fraud laws, and more.
Navistar’s defective engines that are the focus of the lawsuits use an EGR system unique to the company. The system was developed in 2008 in an attempt to meet new federal emissions standards while every other major North American engine maker shifted to using selective catalytic reduction (SCR) instead.
The first lawsuit brought against the company regarding the engine issues came on July 8 but now Par 4 looks to receive compensation for every trucking company that paid for the defective engines. Par 4 and other plaintiffs accuse Navistar of being aware of the defects in their engines but proceeding to sell them anyway. As a result, trucking companies big and small across the country experienced a variety of expensive problems. Par 4 is seeking repayment for out-of-pocket expenses related to issues with the engines. Such expenses include deductibles paid when repairs were covered by warranty, towing charges, lost profits, cost to replace the engines, diminishing value of the trucks, diminished value received by the vehicles, increased salary expenses to hire additional mechanics to deal with the engine problems, increased expenses for tools and parts on hand, and increased costs of purchasing additional vehicles. Many truck drivers also complain of exposure to noxious fumes and dangerous driving situations caused by the problems with the Navistar engines.
In late 2012, Navistar began to transition away from its EGR engine system and has started adding SCR systems to its 11 and 13-liter engines, stopping production of its 15-liter engines entirely.
In accordance with company policy, Navistar has withheld public comment regarding the pending litigation.
The Impacts of the Navistar Lawsuits, Years Later
Navistar, a manufacturer of commercial trucks and diesel engines, has faced several significant lawsuits and legal challenges over the years, each with its own set of impacts and consequences.
Firstly, one of the notable lawsuits that Navistar faced was related to emissions compliance. In 2012, the company settled a lawsuit with the United States Environmental Protection Agency (EPA) and the U.S. Department of Justice for allegedly selling diesel engines that did not meet emissions standards. This lawsuit resulted in a substantial financial settlement, and Navistar had to rework its engine technology to meet the required standards. The impact of this lawsuit was felt not only in financial terms but also in terms of reputation, as it raised questions about the company’s commitment to environmental compliance.
Additionally, Navistar was involved in a legal dispute with Ford Motor Company over an engine supply agreement. Ford sued Navistar in 2007, alleging that Navistar had breached its contract by failing to provide compliant diesel engines. The legal battle had financial consequences for both companies and strained their business relationship. While the lawsuit ultimately resulted in a settlement, it highlighted the challenges and complexities of supplier relationships in the automotive and trucking industries.
Lastly, Navistar has faced lawsuits related to product recalls, warranty claims, and other legal matters. These legal challenges can have financial implications, damage the company’s reputation, and divert resources away from core operations. They also underscore the importance of robust quality control processes and adherence to industry regulations to mitigate potential legal risks in the trucking industry.
In conclusion, the impact of Navistar’s lawsuits has been multifaceted, affecting the company’s finances, reputation, and business relationships. Legal challenges in the trucking industry can be costly and time-consuming, emphasizing the need for companies to prioritize compliance, quality control, and effective dispute resolution mechanisms.