Fleet Management News & Business Info | Commercial Carrier Journal
Issue link: http://read.dmtmag.com/i/357935
LEADING NEWS, TRUCKING MARKET CONDITIONS AND INDUSTRY ANALYSIS A t press time, a Federal Motor Carrier Safety Administration subcommittee was scheduled to meet July 28 in Arlington, Va., to determine whether the agency met its objectives with the three-year cross-border pilot program with Mexico, which started in 2011 and ends Sept. 30. The Motor Carrier Safety Advisory Committee's subcommittee on the U.S.-Mexico Cross Border Long Haul Trucking Pilot Program was formed and tasked with assessing the safety records of Mexican participant carriers, advising the agency on tasks related to the program and issuing a final report concluding whether FMCSA con - ducted the pilot program in a manner consistent with the objectives outlined at the program's outset. The subcommittee was to pres - ent its recommendations to the full committee before the final report is submitted to FMCSA. Public comments were to be heard during the meeting's last 15 minutes, and commenters were able to submit written comments by July 21 for con - sideration during the meeting. – Staff reports S ix trucking companies are involved in two class-action lawsuits against truck and engine maker Navistar International claiming its 2011 and 2012 MaxxForce engines were defective and didn't meet federal 2010 emissions standards. The lawsuits further allege Navistar knew its engines were flawed yet concealed that infor- mation from truck buyers. Navistar spokesperson Elissa Mauer said the company does not comment on pending litigation. Dallas-based law firm Miller Weisbrod announced the initial litigation July 8, saying it is representing Texas-based Americorp Xpress Carriers, Tennessee-based First Express and Washington- based Floyd Blinksy Trucking. The complaints against Navistar, maker of International trucks, stem from the manufacturer's reli- ance on exhaust gas recirculation to try to meet federal emissions standards, a position Navistar used to market its trucks as having the "lowest cost of ownership," per the lawsuit. Americorp and the other carriers say the engines cost them loss of profits, downtime expenses and losses, diminished resale value, out-of-pocket repair expenses, fuel expenses incurred in excess of represented amounts, towing expenses, lodging expenses for driv- ers, rental car expenses, unreimbursed driver downtime and loss of revenue. The problems experienced with the engines included repeated illumination of the check engine lights, engine derating, EGR system failures, fuel pump failures, A/C blower and compressor failures, premature wear and clogged hoses and connections. The second suit, brought by carriers Denis Gray Trucking, Carmichael Leasing and GTL Enterprises, also claim Navistar failed to repair the engines properly during the warranty period, thereby decreasing their trucks' value and shortening the engine's expected life. The alleged defects, which the lawsuit claims stem from the EGR systems on the engines, were safety hazards for both drivers and other motorists, as "sudden breakdowns" would force the trucks' drivers to per- form "emergency maneuvers" to get off the road. The class-action suit claims Navistar knew the EGR systems on the MaxxForce engines had problems, yet hid those issues from truck buyers. The suit points to confidential witness testimony in lawsuits that claim Navistar violated securities laws. According to the testimony, chief engi- neers in the company informed Dan Ustian, former Navistar president and chief executive officer, of their concerns with the engines but that the company proceeded with them anyhow. Engineers also told their supervisors that the level of EGR the company wanted – along with its fuel economy and performance parameters – "was not possible" per the "physics of EGR," according to the lawsuit. – James Jaillet Scan the QR code with your smartphone or visit ccjdigital.com/news/subscribe-to-news- letters to sign up for the CCJ Daily Report, a daily e-mail newsletter filled with news, analy- sis, blogs and market condition articles. COMMERCIAL CARRIER JOURNAL | AUGUST 2014 11 FMCSA subcommittee evaluating cross- border program Carriers sue Navistar over EGR-only engines Navistar cut production of its 15-liter engine entirely and now offers the Cummins ISX15 as its 15-liter option. A FMCSA subcommittee was scheduled to meet July 28 to evaluate the agency's cross-bor- der pilot program with Mexico.