Navistar CEO: Marketshare loss will be brief
Navistar International Corp. Chairman and Chief Executive Lewis Campbell expects erosion of the truck marker’s North American marketshare will be brief as his company moves away from its failed strategy for treating engine exhaust.
Navistar’s average share of the heavy-duty truck market for 2012 fell to 16.5 percent, down from about 21 percent they year before, Dow Jones Newswires reported Wednesday.
Campbell expects Navistar to rebuild momentum for 2014 with its new line of engines, and has set his sights on over-taking North American sales leaders Daimler and PACCAR.
According to the report, Campbell expects the company’s 13-liter engines, which feature a Cummins exhaust-treatment system, will be well received once the market becomes more familiar with the offering and the company wins back consumer confidence.
The company is still waiting for EPA certification that its 13-liter engines meet the agency’s emission standards. Navistar says the company submitted its 13-liter engine for certification in early January and Campbell expects the engine could hit the market slightly late next month.
Navistar’s doomed efforts to to develop an EPA approved proprietary emissions treatment process has been well documented, prompting a partnership with Cummins – a partnership which also expanded the truck maker’s line up to include a new Cummins-built 15 liter engine.
Additionally, Campbell said demand for International branded trucks should increase following completion of warranty-related engine repairs that have plagued trucks the past two years, adding he expects warranty claims this year to be only a fraction of what they were in 2012.
“Once we get all those trucks converted, I think you’ll be surprised at how quickly we regain share,” Campbell said during an interview Tuesday with Dow Jones Newswires after Navistar’s annual shareholders’ meeting.