Navistar International Corp (NAV), Cummins Inc. (CMI): Have You Already Put Your Money on This Turnaround Story?

Why a 13-liter engine? Well, that’s where the excitement will likely be in the years to come — 13-liter is being touted as the latest trend in the Class 8 truck segment. According to truckinginfo.com, this category has outstripped 15-liter engine sales in recent months. It’s a first in history.

The bigger positive for Navistar is that Caterpillar Inc. (NYSE:CAT) continues to use its existing 13-liter engine for vocational trucks CT660. The SCR-powered engines, once approved, will also make way into Caterpillar’s trucks. Caterpillar has been an old and strong partner for Navistar, and intends to remain so despite the turmoil Navistar was caught in. After the CT660, the two are now working on a new cab-over vocational truck that will be sold in markets across the globe.

Caterpillar would have also embraced Navistar International Corp (NYSE:NAV)’s 15-liter engines had they seen the light of the day. Now that it has been dropped, some suggest that Caterpillar might stick to 13-liter for now, while some feel it may reach out to Cummins Inc. (NYSE:CMI) for support. Investors will know the status before 2013 ends.

The Foolish bottom line

Despite all, there’s no question that Navistar has an uphill task at hand as it tries to regain lost market share in core business areas. Management might sound upbeat, and the market may be getting mushy over Navistar, but it’s a little too early to confirm a turnaround.

The article Have You Already Put Your Money on This Turnaround Story? originally appeared on Fool.com.

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