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Takeaway: Expert Call on $NAV's emissions situation @11AM. It is not as simple as it looks and it doesn't look simple at all.

Participant Dialing Instructions

Toll Free Number:

Direct Dial Number:

Conference Code: 952591#

Conference Call Today at 11am EST


Focus on NAV emissions strategy. PCAR,CAT

TOPICS WILL INCLUDE

  • Navistar's Emissions Situation
  • Drivers and Direction of EPA Policy
  • Potential Election Impact
  • Heavy & Light Vehicle Emissions Standards
  • Policy for Off-Road Vehicles
  • Impact of Power Plant Emissions Rulings
  • Other questions from the audience

DICK PENNA EXPERT ON NAV

In addition to his substantial emissions-related Bio, we chose to do a call with him because he represented Volvo in its suit against the EPA regarding Navistars non-conformance penalties.

WHY NAV IS IMPORTANT

Navistar has 18pct of the Class 8 market and a losing product strategy, in our view.  Additional lawsuits against the EPA's new non-conformance penalty regime would undermine Navistar's claim that the issues are now settled.  That notion - that the EPA issues are now settled - is what they are saying in the market place to sell trucks. If it turns out not to be true (even in relatively minor ways), it could further jeopardize the already shaky confidence customers have in the brand.  That is a win for PCAR, Volvo and Daimer, and NAV has a lot of share that it could lose. New new (ie higher) non-conformance penalties may also directly undermine NAV's products. There is even risk that the NCP concept itself could be over-turned.

CLASS 8

Dick will also discuss class 8 emissions in general, as well as the likely direction of regulation post 2018.

CAT

We will touch on Tier IV regulations, a possible driver of prebuy activity at CAT and other off-road engine manufacturers.

LIGHT-DUTY

Dick actively worked on the new light-duty regulations. We will discuss the broader supply chain effects and the potential election impact.