Navistar Settles Class Action Over Faulty MaxxForce Engines

May 29, 2019 by Alan Adler, @AlanAdler

Owners of Navistar International Corp. trucks with faulty MaxxForce engine technology will qualify for a no-questions-asked $2,500 payout or a $10,000 rebate on a new truck under a $135 million class action settlement announced Wednesday.

Navistar will take a $159 million charge against second-quarter earnings to cover the payouts and other pending lawsuits. The U.S. District Court for the Northern District of Illinois must approve the settlement, involving about 65,000 trucks.

The settlement resulted from Navistar’s use of exhaust gas recirculation, or EGR, to control nitrous oxide emissions from its International brand of heavy-duty trucks equipped with 11- and 13-liter engines. The technology failed to meet federal emissions standards. Other truck makers used a system known as selective catalytic reduction to control emissions.

MORE THAN $1 BILLION

Not including the latest settlement, Navistar has paid more than $1 billion in warranty costs to cover reliability and fuel-economy problems with the trucks. It wrote off almost $500 million to cover used trucks it repurchased from angry customers and resold at a loss. That was on top of the $700 million development cost of the engines.

The MaxxForce engines tarnished the manufacturer’s reputation. Sales plunged. Navistar lost almost half its market share as costs soared and losses climbed.

Navistar said it expects the settlement will “accelerate our efforts” to move past the MaxxForce debacle.

In addition to the payouts and rebates, owners who paid for repairs because of the engines can seek up to $15,000 if they have proper documentation, said Jonathan Selbin of Lieff Cabraser Heimann & Bernstein.

The proposed settlement excludes individuals that sued Navistar and won or lost in court, he said.

Law firms spent more than $30 million to press the case, Selbin said. They will seek no more than $40 million in fees.

“All things being equal, I wish Navistar had never rolled out these engines, or that they would have settled this case when we filed it five years ago,” Selbin said. “But this provides real relief and real options for customers.”

Jerry Hirsch February 26, 2018
Using new trucks and a new management team, former GM President Troy Clarke steers Navistar International Corp. from the brink of bankruptcy.

7 Responses

    • Michel Tétreault

      i have a 466 dt manforce
      6000$ injertor
      12000$ valve motor
      lots of trouble

      Reply
    • Meko Brown

      I have a 2010 international 4300 with a maxxforce engine in it. I bought it from a guy in Baltimore in December 2019. Been having problems with it from the start. Exhaust problems and not regenerating. The upside triangle light comes on and off all the time. I wished I did my homework before i purchased this tractor. Dont know if I qualify or it’s to late for the law suit. My number is 678-949-0487. Meko Brown

      Reply
  1. Mike Lee

    Mike Lee; I have a maxx force 13 engine in a 2012 IH pro star truck. I have had problems with the emission and exhaust regeneration systems. The truck is unreliable, looses power and shuts down. Thank You; Mike Lee ; 28698 Sage Road; Valentine, Nebraska 69201 Phone # 402-376-1939 cell# 402-322-3636 The local repair shop won’t work on it & the nearest IH dealer is over 200 miles away.

    Reply

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