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EPA raises fines on non-compliant Navistar engines

* Maximum fines on non-compliant engines raised to $3,775

* Maximum penalties to rise for later model years

* “Clarity” for truck customers - Navistar says

* Shares up slightly post-market

By Nick Zieminski

NEW YORK, Aug 30 (Reuters) - U.S. environmental regulators on Thursday almost doubled the fines that truck maker Navistar International Corp has to pay for each engine that does not comply with emissions rules, according to a ruling provided by the company.

The penalties, of up to $3,775 per non-compliant engine, mark a near-doubling from the $1,919 fines Navistar had been paying for each engine that does not meet current emissions standards. Fines are lower for lower emission rates, but will rise for later model years, the U.S. Environmental Agency (EPA) said in its final rule.

The amount of penalties Navistar must pay to continue selling engines that do not meet U.S. emissions standards has been a crucial issue weighing on Navistar stock this year and was a factor in the company withdrawing its 2012 earnings forecast.

Some analysts had said the company could face penalties of as much as $10,000 per engine.

Navistar this week replaced Chief Executive Daniel Ustian with former Textron Inc CEO Lewis Campbell, after the company’s board lost confidence in Ustian’s engine strategy, which had pursued technology different from that used by rivals such as Paccar Inc and Volvo AB.

The company last month reversed course, opting to adopt the dominant technology. It will begin selling trucks with engines made by Cummins Inc early next year.

“We can now provide our dealers and customers with clarity and certainty as we transition to our clean engine technology and look forward to utilizing the (EPA) rule as needed,” Navistar operating chief Troy Clarke said in a statement.

Navistar shares were up slightly in after-market trading at $21.60.

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