EPA might impose a fine of $3,800 per engine on Navistar

EPA might impose a fine of $3,800 per engine on NavistarThe Environmental Protection Agency might impose a fine of $3,800 for each unit of truck engines sold by the Navistar International Corp. (NAV).

The EPA said in a statement that it is increasing the penalties for selling non- compliant engines from the current level of $2,000 per unit. Navistar had chosen to meet U. S. truck-emissions standards with exhaust gas recirculation even as some companies had legally fought the fines by EPA.

Troy Clarke, Navistar president and chief operating officer said that the new rules will allow the company to provide clarity and certainty to its dealers and customers as it transfers itself to cleaner and greener technology engines.

The federal agency observed that the low penalty allowed manufacturers to continue to produce and sell engines that are not complaint with the regulations. Navistar had been paying $1,919 fines for each engine that does not comply with the emissions standards set by the regulators in the country.

Fines are lower for lower emission rates, but will rise for later model years, as per the final ruling of the U. S. EPA. Some believe that the company might face penalties of upto $10,000 per engine in the coming time if it continues to produce engines that do not comply with the regulations.