As a result of the U.S. Environmental Protection Agency’s (EPA) more stringent emissions requirements for on-highway diesel engines beginning in January 2010, the price of buses built by Navistar (NYSE: NAV) subsidiary IC Bus will increase $6,000 per unit.
This pricing impacts all IC Bus school bus models (the BE Series, CE Series, FE Series and RE Series) and commercial models (including the HC Series and LC Series).
“IC Bus understands that many bus customers have fixed budgets and we recognize that a price increase will have an impact on them,” said John McKinney, president, IC Bus. “Through more efficient sourcing and manufacturing operations we have worked diligently to minimize the design and development costs so that 2010 engine prices are as manageable as possible for our customers. And, while our engines will not have the addition of extra aftertreatment equipment like competitors choosing SCR, we’ve invested heavily into the development of a non-urea solution and meeting the stricter emissions levels carries a higher price.
“We’ve already heard from some school bus customers that are looking forward to having the cleaner engines in their fleet. We’re excited about our progress in bringing to market some of the cleanest, most energy-efficient buses ever produced.”
To meet the 2010 EPA emissions requirements for on-highway diesel engines, IC Bus school and commercial buses will be powered by MaxxForce Advanced EGR (exhaust gas recirculation) engines with proven technologies including advanced fuel injection, air management, electronic controls and proprietary combustion technology.
Other bus manufacturers are choosing to meet 2010 emissions through urea-based Selective Catalytic Reduction (SCR), which requires the use of the fluid, urea, as well as significant aftertreatment equipment which will require complex packaging beneath the bus body.