MASHINIi

Navistar International.

NAV.US | Manufacture of motor vehicles

Navistar International Corporation is a leading manufacturer of commercial vehicles, including trucks and buses, as well as diesel engines. The company designs, manufactures, and markets a wide range of vehicles for various applications, such as transportation, construction, and vocational purposes....Show More

Ethical Profile

Mixed.

Navistar International's ethical standing is complex. The company faced a $52 million fine and a $30 million mitigation program for Clean Air Act violations involving 7,749 non-compliant diesel engines, aiming to reduce NOx emissions by 10,000 tons. Separately, a data breach affected 49,000 individuals, with reports suggesting sensitive data like Social Security numbers were exposed by the Marketo cybercriminal group; critics point to alleged negligent storage. While 2021 operations generated 61 million metric tons of CO2 equivalent, Navistar is committed to science-based targets and electric vehicle investments, alongside an 86% recycling rate and 99.3% wastewater reduction at one plant. The company has also been linked to defense contracts.

Value Scores

Better Health for All-60
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect40
-100100
Fair Trade & Ethical Sourcing0
-100100
Honest & Fair Business-40
-100100
Kind to Animals0
-100100
No War, No Weapons-20
-100100
Planet-Friendly Business-50
-100100
Respect for Cultures & Communities30
-100100
Safe & Smart Tech-30
-100100
Zero Waste & Sustainable Products-20
-100100

Better Health for All

-60

Navistar's core products, including diesel engines, have significant negative health impacts, with diesel exhaust posing a lung cancer hazard and causing respiratory effects

1
. The company introduced 7,749 heavy-duty diesel engines that did not meet 2010 emissions standards
2
. However, Navistar is investing in zero-emission solutions, such as electric vehicles and powertrains approved for 100% renewable diesel
3
, and its vision is to accelerate sustainable mobility for a cleaner, safer world
4
. Navistar has a catastrophic safety record with multiple recalls in the past three years. This includes approximately 6,800 trucks and buses for fire risk in June 2023
5
, over 32,000 vehicles for parking brake issues
6
, 9,170 trucks for fire/crash risk in May 2023
7
, 297 trucks for a seat belt issue in March 2024
8
, and additional recalls in December 2022 for steering loss and January 2023 for school buses
9
. Navistar's risk transparency is moderate. The company violated the Clean Air Act by introducing 7,749 non-compliant diesel engines
10
, resulting in a $52 million civil penalty and a $30 million mitigation program
11
. While it has an Enterprise Risk Management Process
12
and discloses risks through multiple product recalls, these incidents indicate past compliance issues and significant product risks. Navistar generates significant health-harming externalities, with a 2023 carbon footprint of approximately 78 million metric tons CO2e
13
, 96% of which is from product use
14
. Diesel emissions pose lung cancer and respiratory hazards
15
. The company has undertaken substantial remediation efforts, including a $30 million program to reduce 10,000 tons of NOx emissions
16
, and has achieved reductions in electricity (36%)
17
, natural gas (31%)
18
, overall waste (6%)
19
, and hazardous waste (7%)
20
at various facilities. Navistar's health equity programs are token, with minimal funding. In 2023, the company awarded $570,500 for environmental equity impact projects
21
, which represents less than 0.005% of its $11.944 billion sales revenue
22
. Navistar provides substantial mental health support for its employees, including an Employee Assistance Program for all employees and a wellness app used by approximately 25% of employees
23
. The company encourages open discussion about mental health
24
and provides resources to manage mental health
25
.

Fair Money & Economic Opportunity

0

Navistar International Corporation is primarily a manufacturer of commercial vehicles, and its financial arm, Navistar Financial Corporation, provides financing for these commercial vehicles

1
. The 'Fair Money & Economic Opportunity' value and its associated KPIs are largely designed for consumer-facing financial institutions offering lending or deposit services to individuals. There is no evidence that Navistar offers such services or consumer credit products. Consequently, all KPIs related to consumer financial services, such as underserved client share, pricing fairness, exploitative fee exposure, customer data accessibility, fair lending compliance, wealth building outcomes for consumers, financial literacy initiatives for consumers, consumer debt burden ratio, geographic inclusion for financial services, and product simplicity for consumer financial products, are not applicable to Navistar's business model or lack relevant data in the provided articles. While Navistar engages in supplier diversity
2
and employee financial well-being
3
, these do not directly map to the specific definitions of the KPIs for customer-focused financial inclusion.

Fair Pay & Worker Respect

40

As of December 31, 2023, approximately 53% of Navistar's global workforce was represented by labor unions and supported by collective bargaining agreements.

1
In 2023, the company achieved an Incident Frequency Rate (IFR) of 1.18.
2
, which is below the US Bureau of Labor Statistics industry standard rate of 4.8 for heavy-duty truck manufacturing.
3

Fair Trade & Ethical Sourcing

0

No specific, quantitative evidence was found in the provided articles to score any of the KPIs for Fair Trade & Ethical Sourcing. While some articles mention policies, commitments, or general practices related to ethical sourcing, supplier codes of conduct, and human rights due diligence, they do not provide the precise numerical data (e.g., percentages of spend, audit frequencies, number of incidents, or median remediation times) required by the rubric's quantitative thresholds for scoring.

Honest & Fair Business

-40

Navistar incurred $52,000,000 in ethics-related regulatory fines in 2021, with no fines reported in 2022 or 2023.

1
The company has a Whistleblower Hotline and Online Web Reporting system.
2
Employees can report concerns through various channels, including their supervisor, HR, Corporate Compliance, Legal, Corporate Security, the Whistleblower Hotline, the Audit Committee, or TRATON's Whistleblower Hotline.
3
Regarding financial reporting, no restatements were mentioned in the most recent article (2026), although historical restatements occurred for fiscal years 2003, 2004, 2005, 2006, and 2007.
4
Navistar maintains an Anti-Corruption and Anti-Bribery Policy
5
and provides dedicated training to dealers on anti-corruption specifics under U.S. and other applicable laws.
6
The company also joined the UN Global Compact in July 2023, which includes a commitment to anti-corruption principles.
7

Kind to Animals

0

No specific, concrete data points were found in the provided articles to assess Navistar International against any of the 'Kind to Animals' KPIs. The articles discuss general business structure

1
, environmental initiatives
2
,
3
, and philanthropic efforts
4
, but do not provide measurable information on cruelty-free certifications
5
, animal testing
6
, humane operations
7
, wildlife conservation impact
8
, ethical input substitution
9
, supplier audits
10
, cage-free sourcing
11
, or related policies and investments
12
.

No War, No Weapons

-20

Navistar International Corporation divested a 70% interest in its defense business, Navistar Defense, to Cerberus Capital Management in December 2018.

1

Planet-Friendly Business

-50

Navistar's total Scope 1, 2, and 3 greenhouse gas emissions were 80,890,000 tCO₂e in 2024, an increase from 78,485,000 tCO₂e in 2023.

1
The company is committed to developing science-based targets aligned with the SBTi, aiming to cut emissions in half by 2030 and achieve net-zero by 2050, with validation pending.
2
In 2023, Navistar did not purchase market-based renewable energy certificates.
3
The company recycled 86% of its waste in 2023.
4
Approximately 38% of Navistar's water withdrawal in 2023 was from its Escobedo plant in Mexico, an area identified as high water stress.
5
Navistar awarded $570,500 for environmental equity impact projects in 2023
6
and supports workforce transition through its TECH EmPOWERment platform, which provides EV education for future technicians.
7

Respect for Cultures & Communities

30

Navistar has established almost 200 formal partnerships with local dealers and schools through its International Service Essentials Program since 2019.

1
The company has no reported cultural appropriation incidents.
2

Safe & Smart Tech

-30

Navistar experienced a data breach in 2021 that affected between 49,000

1
and 63,126 individuals,
2
compromising protected health information and Social Security numbers
3
. This incident led to a lawsuit alleging negligent storage and failure to properly safeguard systems
4
. While the company reported the breach to the Maine Attorney General
5
, the Department of Health and Human Services’ Office for Civil Rights
6
, and the SEC
7
, and its Privacy Notice acknowledges compliance with the Children's Online Privacy Protection Act (COPPA)
8
and the California Consumer Privacy Act (CCPA)
9
, the alleged negligence indicates gaps in its compliance program. Navistar has adopted three guiding principles for trustworthy AI: Respect, Safety, and Transparency
10
, aiming for non-discriminatory and unbiased outcomes with human oversight
11
. The company utilizes Control-M for Big Data to automatically collect and report on cybersecurity vulnerability scans
12
. Its Privacy Notice states that personal data is retained only as long as necessary to comply with legal obligations
13
, and it collects various personal data categories, including contact information, Social Security numbers, financial details, and vehicle identification numbers
14
.

Zero Waste & Sustainable Products

-20

In 2023, Navistar recycled 86% of all waste generated.

1
Ninety percent of Navistar vehicles' content is recyclable.
2
The company has implemented numerous waste reduction initiatives, including a 99.3% reduction in annual wastewater disposal at its Huntsville Powertrain Plant, a 6% reduction in overall waste generation from 2023 to 2024, and a nearly 7% reduction in hazardous waste generation.
3
Navistar also uses a 100% recycled and reused paint purge solvent at its Springfield plant, which contains less hazardous materials, and has a new wastewater pre-treatment system at its San Antonio plant designed to remove heavy metals.
4
The company aims to generate 20% of its parts revenue from remanufactured parts.
5
Navistar reported no significant environmental enforcement actions or monetary fines for non-compliance in 2023.
6

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.