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Navistar to pay $52 million to resolve Justice Department emissions probe -Breaking

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© Reuters. FILEPHOTO: A row of trucks is parked on the grounds of the International-brand commercial truck manufacturing facility in Escobedo. It’s located outside Monterrey. Picture taken June 29, 2017. REUTERS/Daniel Becerril/Files

By David Shepardson

WASHINGTON, (Reuters) – Engine manufacturer Navistar International Corp (NYSE:) will pay a civil penalty of $52,000,000 and agree to reduce at least 10,000 tonnes of oxides nitrogen (NOx), as part of a settlement reached with the U.S. Justice Department regarding violations of Clean Air Act.

According to the Justice Department, Monday’s announcement stated that Navistar from Illinois, purchased by Volkswagen (DE)’s Traton Truck Unit for $3.7 Billion in July, had illegally imported into commerce heavy-duty diesel engine not approved by Environmental Protection Agency emissions regulations.

The engines were the subject of a lawsuit by the United States against Navistar in 2015. According to the Justice Department, Navistar has to buy and destroy sufficient older diesel engines in order for future NOx emissions not exceed 10,000 tonnes. It also must forfeit any current NOx credits.

Navistar stated that it has signed a “definitive settlement agreement” (with the Justice Department, and with the EPA).

“Navistar is happy to leave behind this legacy issue, and we are eager to work on transport solutions for the future,” said the company.

According to the Justice Department’s allegations, Navistar had introduced diesel engines into commerce in 2010 after lower emission standards were implemented.

A proposed consent decree was filed by the Justice Department, which stated that Navistar diesel engines can be destroyed in order to drive heavy-duty diesel.

Future emissions can be prevented by “trucks, buses, transit, intercity, school busses, and any other on-highway heavy diesel vehicles.”

The Justice Department stated that Navistar engines of model year 2010 were held to be valid and must have a certificate from 2010 proving compliance with lower emissions requirements.

Acting EPA Assistant Administrator Larry Starfield said “older diesel engines without modern emissions controls emit significant amounts of air pollution that harms people’s health and takes years off people’s lives.”

Starfield stated that Navistar’s NOx emission mitigation must be based on “geographic diversity, and benefits for communities overburdened from air pollution.”

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