Flags fly outside the Navistar Proving Grounds in New Carlisle, Indiana, U.S., October 12, 2016.  Picture taken October 12, 2016. REUTERS/Jim Young

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

WASHINGTON, Oct 25 (Reuters) – Engine producer Navistar Worldwide Corp will pay a $52 million civil penalty and has agreed to stop no less than 10,000 tons of oxides of nitrogen (NOx) emissions in a settlement with the U.S. Justice Department over Clear Air Act violations.

The Justice Department stated on Monday that Illinois-based Navistar, which was acquired by Volkswagen’s (VOWG_p.DE) Traton (8TRA.DE) truck unit for $3.7 billion in July, illegally launched into commerce heavy-duty diesel engines not licensed by Environmental Safety Company emissions guidelines.

In 2015, america filed go well with in opposition to Navistar over the engines. Navistar should buy and destroy sufficient older diesel engines to stop 10,000 tons of future NOx emissions, the Justice Department stated, and forfeit its present NOx credit.

Navistar stated it had signed “a definitive settlement agreement” with the Justice Department and the EPA.

“Navistar is pleased to put this legacy issue behind us and eager to focus on transportation solutions for the future,” the corporate stated.

The Justice Department alleged that in 2010, after decrease emission requirements went into impact, Navistar launched into commerce 7,749 diesel engines that didn’t meet the decrease emission requirements.

The Justice Department lodged a proposed consent decree outlining the settlement phrases, saying Navistar can destroy diesel engines used to energy heavy-duty diesel

“trucks, transit, intercity, or school buses, or any other on-highway heavy duty diesel vehicles” to stop future emissions.

A U.S. courtroom held that the Navistar engines had been the truth is model-year 2010 engines and required to be coated by a 2010 certificates demonstrating compliance with the decrease emission necessities, the Justice Department stated.

Performing EPA Assistant Administrator Larry Starfield stated “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.”

Navistar’s mitigation of NOx emissions should think about “geographic diversity and benefits to communities that are overburdened by air pollution,” Starfield added.

Reporting by David Shepardson; Enhancing by Leslie Adler and Peter Cooney

Our Requirements: The Thomson Reuters Trust Principles.

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