Navistar and EPA settle their differences

Truck and engine manufacturer Navistar said yesterday that it has agreed with the EPA to pay a fine of $3,775 per engine for diesel engines it manufactures that do not meet the 2010 EPA mandated emissions restrictions. 

While this is more than the $1,919 the company had been paying, the company said it was pleased with the decision.

“We can now provide our dealers and customers with clarity and certainty as we transition to our clean engine tehnology and look forward to utilizing the Final Rule as needed,” said Troy Clarke, Navistar president and COO.

According to the Chicago Tribune, the fines will not be retroactive and they will apply equally to all engine manufacturers.

This raises an interesting point. Would it make more financial sense for Cat, Cummins, et. all, to pay the fine rather than outfit their current engines with SCR technology to reduce emissions?