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Daniel Ustian last week stepped down and retired as chairman, CEO and president of Navistar International Corp., as the company he helped to build saw its financial fortunes turn after its 13-liter engine failed to comply with federal emissions standards.

Navistar Inc. will once again be able to pay a penalty to sell heavy-duty diesel engines that violate 2010 emissions standards, thanks to a new federal regulation that replaces a previous set of penalties overturned by a court in June.

The White House approved a regulation that could allow Navistar Inc. to resume selling heavy-duty diesel engines that violate 2010 emissions standards while paying a penalty.

Navistar International Corp. said Monday that Chairman and CEO Daniel Ustian is retiring effective immediately, and that it has named an interim replacement.

LISLE, Ill. — Navistar International Corp. executives last week revealed their strategy for introducing a refocused product line with different engine emissions control technology in a bid to recapture market share.

Chinese government regulators have approved a joint engine-making venture between Navistar International Corp. and Chinese truck maker Anhui Jianghuai Automobile Co. Ltd., Navistar said.

The final rule that would allow Navistar International Corp. to sell its emissions-noncompliant 2010 engines while paying fines has been forwarded to the Office of Management and Budget by the Environmental Protection Agency.

Navistar International Corp. said Thursday it will begin offering 15-liter Cummins engines in some of its International brand trucks and will incorporate Cummins’ urea-based aftertreatment into its MaxxForce engines.

Navistar International Corp.’s new plan to meet federal emissions standards by adding an engine technology it previously disparaged is raising a wide range of questions, according to industry analysts.