Westport Innovations Inc., which develops technology for natural-gas engines, fell the most since October after Navistar International Corp.’s expansion plans spurred concern Westport will lose market share.
Westport plunged as much as 8.9 percent after Navistar, the maker of heavy-duty trucks, said it will expand its offerings of models that use natural-gas engines. Shares of Vancouver-based Westport dropped 7.9 percent to C$38.34 at 3:49 p.m. Toronto time after closing at a 10-year high yesterday.
Some Navistar trucks will use an engine developed by Westport and Cummins Inc., while others will have an engine Navistar is developing with Leyland, England-based Clean Air Power Ltd. Navistar, a truckmaker based in Lisle, Illinois, will continue to sell vehicles with an engine it developed with Emissions Solutions Inc. of McKinney, Texas.
“The excitement around Westport engines is around their unique, heavy-duty technology” called high-pressure direct injection, Rupert M. Merer, a Toronto-based analyst at National Bank of Canada, said in a telephone interview. “Clearly, Navistar is stating they’re going to be developing a competing product to the HPDI.”
Westport surged 23 percent in January, extending its 12-month rally to 165 percent, as U.S. President Barack Obama promoted natural-gas use and the price of the fuel touched a nine-year low. The company signed its own research and development deals with General Motors Co. and Caterpillar Inc. last year.