{"id":1178,"date":"2025-06-26T05:38:09","date_gmt":"2025-06-26T05:38:09","guid":{"rendered":"https:\/\/tcap.blog\/?p=1178"},"modified":"2025-06-26T06:14:51","modified_gmt":"2025-06-26T06:14:51","slug":"customer-corner-navistar-cummins-not-so-gold-star-customer","status":"publish","type":"post","link":"https:\/\/tcap.blog\/2025\/06\/26\/customer-corner-navistar-cummins-not-so-gold-star-customer\/","title":{"rendered":"Customer Corner : Navistar \u2013 Cummins\u2019 Not-So Gold Star Customer"},"content":{"rendered":"\n<figure class=\"wp-block-image aligncenter size-full is-resized\"><img alt=\"\" loading=\"lazy\" decoding=\"async\" width=\"896\" height=\"504\" src=\"https:\/\/tcap.blog\/wp-content\/uploads\/2025\/06\/cc.jpg\" alt=\"\" class=\"wp-image-1000\" style=\"width:288px;height:auto\" srcset=\"https:\/\/tcap.blog\/wp-content\/uploads\/2025\/06\/cc.jpg 896w, https:\/\/tcap.blog\/wp-content\/uploads\/2025\/06\/cc-300x169.jpg 300w, https:\/\/tcap.blog\/wp-content\/uploads\/2025\/06\/cc-768x432.jpg 768w\" sizes=\"auto, (max-width: 896px) 100vw, 896px\" \/><\/figure>\n\n\n\n<p>In the filthy, diesel-drenched guts of the trucking world, where integrity gets crushed under the weight of greed, International Motors, LLC (formerly Navistar International Corporation) stands out like a knackered engine on a scrapheap. They\u2019re Cummins\u2019 chosen mate, a partnership forged in the kind of back-alley swagger that laughs at rules and spits on decency. These two aren\u2019t just pals; they\u2019re partners in grime, bound by a shared contempt for the Clean Air Act and a talent for dodging accountability like it\u2019s a tax demand. Buckle up \u2013 this is their rap sheet, and it\u2019s uglier than a motorway crash.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\"><strong>Military Overbilling Scam<\/strong><\/h3>\n\n\n\n<p><strong>Case \u2013<\/strong> U.S. ex rel. Burgess v. Navistar Defense, LLC et al., No. 13-cv-1463 (D.D.C.)<br>In May 2021 Navistar Defense entered a Deferred Prosecution Agreement, paying <strong>US $50 million<\/strong> after submitting bogus invoices for suspension systems on Mine-Resistant Ambush Protected vehicles. Whistle-blower Duquoin Burgess received <strong>US $15 million<\/strong>, highlighting the firm\u2019s willingness to fleece the U.S. Marine Corps.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\"><strong>Dirty Diesel Emissions Deal<\/strong><\/h3>\n\n\n\n<p>Also in 2021, Navistar agreed to reduce <strong>10 000 tonnes<\/strong> of NO\u2093 emissions and pay a <strong>US $52 million<\/strong> civil penalty after selling thousands of diesel engines that failed EPA standards. Branded as 2009 models but built in 2010, these engines spewed excess pollution for months before regulators intervened \u2013 their fix was to destroy older engines, but the damage was already done.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\"><strong>Accounting Fraud Fiasco<\/strong><\/h3>\n\n\n\n<p>Between 2001\u201305 Navistar overstated pre-tax income by <strong>US $137 million<\/strong> via vendor-rebate schemes and warranty tricks. The SEC fined individuals up to <strong>US $113 000<\/strong> and barred one ex-controller; the CEO and CFO returned millions in bonuses. The company itself sidestepped a corporate penalty by settling just before charges were filed \u2013 a textbook sleight-of-hand.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\"><strong>MaxxForce Engine Fiasco<\/strong><\/h3>\n\n\n\n<p>In 2020 Navistar agreed a <strong>US $135 million<\/strong> settlement to resolve class-action claims over <strong>60 000<\/strong> MaxxForce engines plagued by faulty emissions systems. Lakeview Bus Lines alone lost <strong>US $4.5\u20135.3 million<\/strong> in downtime and repairs; in Tennessee the company paid <strong>US $22 million<\/strong> under a separate judgment. These rolling disasters forced Navistar into its largest class-action pay-out to date.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\"><strong>Capitol Rioter Employee<\/strong><\/h3>\n\n\n\n<p>In 2021 a staffer at Navistar Direct Marketing was sacked after storming the U.S. Capitol on January 6, flashing a company badge while entering the building. It\u2019s a telling anecdote of a culture that tolerates mayhem if it serves profit.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>The Cummins Connection<\/strong><\/h2>\n\n\n\n<p>They buy Cummins engines because they share a taste for dirty deals. Cummins paid a <strong>US $1.675 billion<\/strong> penalty in 2023 for installing defeat devices on over 630 000 Ram diesel engines, misleading regulators and the public. A 2024 class action then accused them of greenwashing \u2013 lying about ESG goals while churning out pollution like it was 1985.<\/p>\n\n\n\n<p>When your top customer is a serial offender in over-billing, fraud, emissions cheating and market manipulation, you learn all the wrong lessons. Their blueprint of profit-over-people infects every engine they put on the road.<\/p>\n\n\n\n<p><strong>Lee Thompson<\/strong><br><em>Founder, The Cummins Accountability Project<\/em><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\"><strong>Sources<\/strong><\/h3>\n\n\n\n<p><a class=\"\" href=\"https:\/\/en.wikipedia.org\/wiki\/International_Motors\">Wikipedia \u2013 International Motors, LLC<\/a><br><a href=\"https:\/\/www.justice.gov\/archives\/opa\/pr\/navistar-defense-agrees-pay-50-million-resolve-false-claims-act-allegations-involving\">DOJ OPA \u2013 Navistar Defense agrees to pay US $50 million<br><\/a><a href=\"https:\/\/www.justice.gov\/archives\/opa\/pr\/navistar-inc-reduce-10000-tons-nox-emissions-and-pay-52-million-civil-penalty-federal\">DOJ OPA \u2013 Navistar to reduce 10 000 tonnes of NO\u2093 emissions and pay US $52 million<\/a><br><a class=\"\" href=\"http:\/\/archive.chicagobreakingbusiness.com\/2010\/08\/sec-files-for-settlement-in-navistar-accounting-fraud-case.html\">Chicago Breaking Business \u2013 SEC files for settlement in Navistar accounting fraud case<\/a><br><a class=\"\" href=\"https:\/\/topclassactions.com\/lawsuit-settlements\/consumer-products\/auto-news\/navistar-truckers-reach-135m-engine-defect-settlement\/\">Top Class Actions \u2013 Navistar, truckers reach US $135 million engine defect settlement<\/a><br><a class=\"\" href=\"https:\/\/www.nbcwashington.com\/news\/local\/maryland-company-fires-employee-who-stormed-capitol-wearing-badge\/2533568\/\">NBC Washington \u2013 Maryland company fires employee who stormed Capitol wearing badge<\/a><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the filthy, diesel-drenched guts of the trucking world, where integrity gets crushed under the weight of greed, International Motors, 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