Daimler: concerned about using cash to avoid new NoX rules

Daimler Truck North America is expressing concerns about a proposed change to the nitrogen oxide (NOx) emissions rule for heavy and medium duty vehicles. The truck manufacturer, based in Frankfurt, worries that the amendment could have a significant impact on their upcoming 2027 engine model. The EPA released the proposed rule amendments in July, with a comment period that ended in late August.

Daimler's CEO, Dan Potter, stated that the company believes the EPA's rule has created flexibility and supports their planned 2027 engine, but they are concerned about a specific provision: non-compliance penalties (NCPs). NCPs would allow engine manufacturers to pay fines for non-compliance with the NOx standard, rather than having to redesign or re-engineer their products.

Potter explained that federal law allows for the use of NCPs when manufacturers are unable to meet standards due to technological reasons. However, Daimler believes that the fines for non-compliance are lower ($6,000 to $7,000) than the cost of making their engines compliant ($15,000), making NCPs an economically attractive option.

The Engine Manufacturers Association (EMA), a trade group representing Daimler and other manufacturers, has also voiced its opposition to the NCP provision, arguing that it would put at risk the investments made in developing compliant engines and could put jobs at risk.