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NAVISTAR INITIATES VOLUNTARY SCHOOL BUS RECALL

 NAVISTAR INITIATES VOLUNTARY SCHOOL BUS RECALL
 CHICAGO, July 22 /PRNewswire/ -- Navistar International


Transportation Corp. (NYSE: NAV) today announced it has identified a non-compliance, fuel system defect potentially affecting International brand school bus chassis built since Sept. 1, 1978, and notified the National Highway Traffic Safety Administration (NHTSA) it will conduct a voluntary vehicle recall. Depending on the outcome of further testing by Navistar, this voluntary recall may involve as few as 24,000 or as many as 185,000 vehicles in the U.S.
 "Vehicle integrity is the highest possible priority to Navistar and we are currently developing and testing modifications to remedy this situation," said Mark D. Schwabero, group vice president, Truck Businesses for Navistar. Appropriate officials with responsibility for school bus operations throughout the U.S. and Canada will be provided with additional facts about the recall, and plans for product modifications, as soon as they become known. The company expects to contact bus owners during August.
 "International school bus chassis have earned an excellent reliability record in the market, and Navistar will take every measure necessary to minimize the vehicle recall's impact upon users of affected vehicles," stated Schwabero. All affected vehicles will be modified to ensure compliance.
 On June 23, 1992, at the request of NHTSA, an International school bus chassis equipped with a 35-gallon fuel tank and cage system was subjected to a Federal Motor Vehicle Safety Standard test for fuel system integrity. This standard requires that school buses do not leak excessive fuel in a laboratory crash test in which a two ton barrier strikes the bus. During the test it was determined that in one specific location and angle test condition, fuel leakage from the tank exceeded the allowable level. Navistar was notified by NHTSA of the failure June 24, 1992, and immediately began an investigation.
 The company noted that in previous tests conducted over the past 16 years by both NHTSA and the company, no such defect had been identified. There have been no incidents, accidents or injuries reported that relate to this non-compliance defect.
 While the extent of the voluntary recall has not been determined, the related expenses are anticipated to be in the range of $1 million to $20 million.
 Customers with questions on this voluntary recall can contact Navistar at 800-44-TRUCK (800-448-7825).
 -0- 7/22/92
 /CONTACT: Mary Moster, VP-communications, 312-836-3240, or Deborah Spak, 312-836-3232, both of Navistar International Transportation/
 (NAV) CO: Navistar International Transportation Corp. ST: Illinois IN: AUT SU:


SH -- NY032 -- 1826 07/22/92 11:10 EDT
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Publication:PR Newswire
Date:Jul 22, 1992
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