CNBC circulates Navistar bankruptcy rumor

(June 25, 2012) -- The EPA has yet to certify Navistar's EGR engine. Consequently, the company is relying upon emissions reduction credits earned for environmentally friendly actions it took from 2007 to 2009. However, CNBC noted those credits will run out at the end of the year. Although EPA earlier agreed to a let Navistar continue by paying a $1,900 fine per engine sold, Navistar competitors sued EPA, and a federal judge ruled last week against the EPA's stop-gap measure. EPA noted that if Navistar didn’t catch a break on compliance, the company could lose up to $3 billion in revenue and nearly 4,000 employees would be laid off.