Navistar Sued Over Maxxforce Engines
Lawsuits have been filed in three cities against Navistar saying it misled three firms regarding the exhaust gas recirculation (EGR) MaxxForce engine being certified to meet the Environmental Protection Agency’s 2010 emissions standards.
The suits were filed in McAllen, Texas, on behalf of Americorp Xpress Carriers; in Nashville, Tennessee, on behalf of First Express; and in Tacoma, Washington, on behalf of Floyd Blinsky Trucking. This involves model years 2011 and 2012 International tractors with MaxxForce engines.
It also alleges that the plaintiffs have experienced repeated and excessive breakdowns to their trucks powered by the MaxxForce engines including components such as the EGR cooler, EGR valve, turbochargers, and clogged fuel injectors.
The lawsuit seeks to recover lost profits due to the unreasonable downtime, out-of-pocket expenses related to the breakdowns and the diminished value on trade-in or resale for the units due to their excessive repair histories and failure to be EPA 2010 certified.
Clay Miller, partner at Miller Weisbrod law firm said: “Our investigation has revealed the problems with the MaxxForce engine are pervasive throughout the trucking industry. Our firm is representing numerous other companies and anticipate filing dozens of more cases in states across the country.”
Navistar stopped making the 15-liter MaxxForce Class 8 heavy-duty diesel engines in July 2012 and was abandoning the use of its EGR-only technology on all Class 8 engines.
Company spokesperson for Navistar, Elissa Maurer, said: “As a matter of a company policy, we don’t comment on pending litigation.”
EU and US agree end to Airbus-Boeing supply chain tariffs
The EU and US have agreed to resolve a 17-year dispute over aircraft subsidies, suspending tariffs on billions of dollars' worth of goods that have plagued procurement leaders on both sides of the Atlantic.
Under an agreement reached by European Commission Executive Vice-President Valdis Dombrovskis and US Trade Representative Katherine Tai on Tuesday, the tariffs will be halted for a period of at least five years.
It will bring an end to punitive and disruptive levies on supply chains that have little to do with the argument, which became embroiled in the trade battle. Businesses on both sides of the dispute have been hit with more than $3.3bn in duties since they were first imposed by the US in October 2019, according the EC.
The US imposed charges on goods upto $7.5bn in response to a World Trade Organisation ruling that judged the EU’s support of Airbus, its biggest aircraft manufacturer, unlawful. A year later in November 2020, the EU hit back. The WTO found the US had violated trade rules in its favourable treatment of Boeing, and was hit with EU duties worth $4bn.
In all the tariffs affected $11.5bn worth of goods, including French cheese, Scotch whisky, aircraft and machinery in Europe, and sugarcane products, handbags and tobacco in America. Procurement leaders on both sides of the fence were forced to wrestle with tariffs of 15% on aircraft and components, and 25% on non-aircraft related products.
Boeing-Airbus dispute by the numbers
- The dispute began in 2004
- Tariffs suspended for 5 years
- $11.5bn worth of goods affected by tariffs
- $3.3bn in duties paid by businesses to date
- 15% levy on aircraft and 25% on non-aircraft goods suspended
Both sides welcome end to tariffs
European Commission President Ursula von der Leyen branded the truce a “major step” in ending what is the longest running dispute in WTO history. It began in 2004.
“I am happy to see that after intensive work between the European Commission and the US administration, our transatlantic partnership is on its way to reaching cruising speed. This shows the new spirit of cooperation between the EU and the US and that we can solve the other issues to our mutual benefit,” she added.
Both aircraft manufacturers have welcomed the news. Airbus said in a statement that it will hopefully bring to an end the “lose-lose tariffs” that are affecting industries already facing “many challenges”. Boeing added that it will “fully support the U.S. Government’s efforts to ensure that the principles in this understanding are respected”.
The US aerospace firm added: "The understanding reached today commits the EU to addressing launch aid, and leaves in place the necessary rules to ensure that the EU and United States live up to that commitment, without requiring further WTO action."
This week’s decision expands upon a short-term tariff truce announced in March this year. The EC says it will work closely with the US to try and further resolve the dispute, establishing a Working Group on Large Civil Aircraft led by each side’s trade minister.
Airbus last month signalled to suppliers that post-pandemic recovery was on the horizon, telling them to scale up to meet a return to pre-COVID manufacturing levels. “The aviation sector is beginning to recover from the COVID-19 crisis,” said Airbus chief executive Guillaume Faury, adding that suppliers should prepare for a period of intensive production “when market conditions call for it.”