Environmental Practices

Navistar is committed to creating and delivering industry-leading products while delivering profitable growth. Our product stewardship program is critical to both these goals.

As the world’s most efficient internal-combustion engine, diesel provides more power and goes farther per gallon than gasoline, compressed natural gas or liquefied natural gas. Diesel engines’ mileage per gallon surpasses gasoline by 30 percent to 40 percent, with equivalent reductions in carbon dioxide emissions.

Since producing the industry’s first smokeless diesel engine in 1989, Navistar has pioneered innovations that consistently meet or exceed government clean air regulations. Navistar’s technology met 2007 federal standards for particulate matter (PM) and hydrocarbons (HC) six years ahead of government requirements.

Navistar is also pioneering the development of electric commercial vehicles. In August 2009, President Obama visited Navistar’s Wakarusa, Ind., manufacturing facility to announce that Navistar had received a $39 million grant from the U.S. Department of Energy to develop and build all-electric delivery vehicles. The company was then in the process of finalizing a joint venture with Modec Ltd. of the United Kingdom to produce and sell electric Class 2c-3 commercial vehicles in North, Central and South America.

Our diesel engines will use proven technologies to meet federal standards for oxides of nitrogen (NOx), cutting emissions by more than 75 percent in 2010.

We are the only U.S.-based equipment manufacturer that will meet the U.S. Environmental Protection Agency’s tough emissions standards by using Exhaust Gas Recirculation technology to eliminate NOx emissions in cylinder, without the need for liquid urea-based aftertreatment equipment that will add hundreds of pounds to each vehicle.

Our engine design also contributes to improved fuel economy. In 2008, we launched our first big-bore MaxxForce® diesel engines, which enjoy a 400- to 800-pound weight advantage over the competition. MaxxForce 11 and MaxxForce 13 big-bore engines set new industry standards for heavy-duty diesel performance, with fuel efficiency that surpasses previous models by 9 percent to 13 percent.

Navistar also contributes significantly to the trucking industry’s use of remanufactured parts, which account for approximately 30 percent of our parts sales each year. During 2008, Navistar Parts also made a number of additions to its green product line.

Navistar has led the way in using aerodynamic truck design to achieve increased fuel efficiency and reduced emissions.

Tests conducted to the standards of the Society for Automotive Engineers (SAE) and the Technology & Maintenance Council confirm that the International® ProStar®, launched in 2007, is more aerodynamic than any other Class 8 tractor being operated in North America, delivering annual fuel savings of at least 1,300 gallons compared with traditional models. Likewise, the International® LoneStar®, launched in 2008, has fuel economy 20 percent better than leading competitors in the advanced classic long-haul category.

Both the ProStar and the LoneStar have been certified by the U.S. Environmental Protection Agency as SmartWay vehicles. LoneStar is the first classic-styled Class 8 truck to receive this honor.

In December 2008, the company was selected by the U.S. Department of Energy to participate in a project aimed at accelerating the development of advanced, aerodynamic trailers that can contribute to significant reductions in fuel consumption.

Navistar is also the industry leader in producing diesel hybrid vehicles – including both hybrid commercial trucks and hybrid school buses.

Navistar was the first company to enter line production of hybrid commercial trucks. The International® DuraStar® hybrid, a diesel hybrid electric medium-duty truck, reduces emissions and provides customers with fuel savings of 30 percent to 40 percent over standard diesel technology. Each DuraStar hybrid saves nearly 1,000 gallons of fuel every year, while emitting as much as 33 percent fewer HC and 35 percent less NOx than standard diesel trucks. Our subsidiary IC Bus produced the nation’s first hybrid school buses, which cut emissions by as much as 70 percent while improving fuel efficiency by an equivalent amount.

Here are some of the many recent innovations in hybrid technology being driven by Navistar:

• In 2008, Navistar delivered a DuraStar hybrid geared toward general freight and food/beverage applications, as well as the first DuraStar hybrid to be used in the U.S. waste industry.
• In October 2008, Navistar announced the delivery to UPS of a little-known technology – the hydraulic-hybrid delivery vehicle – produced through the company’s private-public partnership with UPS, Eaton Corporation and the EPA. Based on a chassis platform provided by Navistar subsidiary Workhorse, the hydraulic-hybrid delivery vehicle promises dramatic fuel savings and environmental benefits. UPS will incorporate seven hydraulic hybrids into its fleet in the next year.
• In March 2009, Navistar introduced the industry’s first hybrid four-wheel-drive commercial truck, the International® WorkStar® Hybrid 4x4.
• In April 2009, as part of its Plug-In Hybrid Electric Vehicle (PHEV) Technology Acceleration and Deployment Activity Program, the U.S. Department of Energy selected Navistar to develop, test and deliver 60 plug-in hybrid electric school buses to fleets across the nation.

In recognition of its contributions to the commercial development of diesel hybrid technology, Navistar received the Blue Sky Award from WestStart-CALSTART, a leading organization working to support clean and energy-efficient transportation technologies.

The Society of Automotive Engineers (SAE) also recognized Navistar for leadership in the commercial hybrid truck industry at its 2008 Environmental Excellence in Transportation (E2T) Awards in Washington, D.C.

In October 2008, the Internal Revenue Service added 10 IC Bus hybrid bus models to a list of vehicles that qualify for the Alternative Fuel Motor Vehicle Credit enacted by the Energy Policy Act of 2005. The 10 models offered by IC Bus are the first and only school and commercial buses on the list.

Under Edith Ardiente, Navistar’s vice president for environmental affairs, the experience and ingenuity that make Navistar an industry leader in products have been applied to our protection of the environment through our operations.

The company continues to make strong progress in eliminating hazardous waste, non-hazardous waste and toxic releases and in reducing energy consumption, which leads directly to reductions in emissions of greenhouse gases.

A critical part of Navistar’s environmental sustainability effort is the company’s long-standing environmental auditing program, established in 1990. Regular internal audits, combined with adherence to the strict operational control procedures that are a key element of our environmental management systems, assure our continued compliance with environmental laws and regulations. In fact, almost all Navistar manufacturing facilities have environmental management systems that are certified by a third party to conform to the ISO 14001 international standard.

During the last two decades, Navistar and its facilities have been recognized more than 100 times for environmental excellence through awards and other recognition. In June 2009, Ferdinand Alido, Manager of Environmental Affairs, was presented with the prestigious “Outstanding Young Professional Award” by the 9,000-member Air & Waste Management Association at its international meeting in Detroit, Michigan.

Working closely with our facilities, the company’s purchasing group has developed a strategy for reducing the costs and risks of energy procurement.

Key strategies include reducing demand, engaging in electronic auctions to reduce rates, and managing risks by balancing energy float versus the purchase of forward energy contracts. The purchasing group’s five-year target of 20 percent reduction in facilities’ energy use will result in equivalent reductions in carbon dioxide emissions.

Navistar is an active participant in the Environmental Protection Agency’s (EPA) SmartWay program, launched in 2004 with the aim of developing more environmentally friendly transportation options and reducing transport-related emissions. Recently, we became the first original equipment manufacturer (OEM) to earn certification as both a SmartWay transporter and a SmartWay manufacturer. In earning this certification, Navistar pledged to reduce greenhouse gas (GHG) emissions at our freight facilities, while increasing the percentage of freight shipped to and from our facilities by SmartWay-certified shippers to at least 50 percent – a goal we have since surpassed.

In 2008, Navistar also committed to aggressive reduction of waste at 17 truck, engine and warehouse facilities, and to reducing non-recyclable waste shipped by suppliers. All waste stream data is being tracked consistently across the enterprise, with the ultimate goal of having zero waste go to landfills.

Around the world, Navistar employees are answering the call for green action, giving the planet a boost while improving the company’s bottom line.

One major area where Navistar employees are making a difference is reducing energy use. Here are just a few examples:

• The New Ideas Program at our South American engine subsidiary, MWM International, encourages employees to generate new ideas designed to improve operations, reduce costs and reduce environmental impacts. One improvement that has achieved all three goals is a lighting upgrade at MWM’s Jesús María, Argentina, engine plant. With a small investment, the plant replaced existing mercury vapor lamps with compact fluorescent lamps and installed new sockets and light sensors – leading to 15 percent better illumination and a savings of more than $4,100 per year.
• The Fort Wayne, Ind., engineering facility will save $30,000 each year with its new lighting system, reducing electricity consumption more than 40 percent.
• Employees at our Garland, Texas truck assembly plant have saved 16.5 million kilowatt hours since 2004 – enough to power 1,370 homes for a year.

Throughout our facilities, environmental best practices improve business results while enhancing recycling and reducing waste.

• The Indianapolis Casting Corporation (ICC) cut its scrap in half – from 11.5 percent in 2004 to just 5 percent in 2008. On top of conserving landfill space, these cuts saved more than $4 million.
• In 2008, the Mexican National Emergency Agency and the Patron Confederation of the Mexican Republic presented our assembly plant in Escobedo, Mexico with the first-ever Hazardous Waste Recycling Award for its extensive re-use and recycling programs, which saved more than two million gallons of petroleum, more than 31 million kilowatt-hours of electricity and upwards of 38 million gallons of water from 2003 to 2007.
• The Tulsa, Okla., bus plant saves approximately $109,000 annually by replacing pallets and plastic wrapping for bumpers with reusable racks.
• Each year, our Dallas parts distribution center (PDC) recycles 49 tons of corrugated cardboard boxes.
• Our Melrose Park, Ill., engine plant saved $16,966 in 2008 by switching to a floor cleaner that reduced chemical usage by 2,640 gallons.

Our manufacturing plants are not the only Navistar facilities where green improvements are taking hold.

• Navistar’s information technology (IT) group has moved to the use of “virtual servers” on a single physical hardware platform – saving Navistar 80 percent per server in power and cooling costs over a standalone configuration.
• The group also has created second- and third-tier storage platforms outfitted with low-power serial drives that consume 96 percent less energy per terabyte than past storage drives.
• Our International dealers are also reducing heating and cooling costs through such steps as the use of single overhead entrance and exit doors and expanded use of in-floor heating systems – sometimes powered by recycled waste oil – to warm their service bay floors and concrete aprons. New automatic lubrication systems dispense the precise amount of oil, lubricant and solvents needed for each truck.

Navistar is a member of the Wildlife Habitat Council, a nonprofit group consisting of corporations, conservation organizations and individuals dedicated to restoring and enhancing wildlife habitat.

Our Springfield, Ohio assembly operations and our Fort Wayne, Ind., engineering center have established wildlife management teams, composed of employee volunteers, who are working to create and restore wildlife projects on their large areas of open land.

At Springfield, where student volunteers worked with the company to establish bird and bat habitats, recent scouting expeditions revealed a wide array of species, including Canada geese and goslings; three species of duck (mallard, bufflehead and greater scaup); tree swallow, blue gray gnatcatcher, cedar waxwing, cardinal, flicker, robin, song sparrow, red-winged blackbird, grackle and starling, as well as rabbits and deer.

Navistar also conducts brownfield remediation of its closed or sold sites so they can be offered for development activities that add value to local communities.

• Navistar invested more than $2.7 million in demolition and remediation of the former Springfield Body Plant in Ohio plant, and then, for a minimal sum, transferred the property to the City of Springfield for redevelopment.
• Ongoing remediation of the former Wisconsin Steel Works site in southeastern Chicago, once owned by Navistar, earned the “Good Neighbor Award” of the Southeast Environmental Task Force, an environmental advocacy group. Six parcels representing 135 acres of this 176-acre site have received No Further Remediation letters from the Illinois Environmental Protection Agency, and two of these cleaned-up parcels have already been sold for industrial reuse.
• The 21-acre former West Pullman Works site, located on Chicago’s South Side, is undergoing remediation that is slated for completion during 2009. Recently, Exelon Corporation announced that a 10-megawatt solar plant will be installed at the site and at some neighboring properties, with projected funding from the federal government and endorsement by the City of Chicago.
• Navistar is also managing the cleanup of a site in San Diego, Calif. that the company owned for 20 years before selling it in 1981 to Solar Turbines, a wholly owned subsidiary of Caterpillar.