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Navistar WILL continue to sell engines to Ford

Old 4/4/07, 04:18 PM
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Navistar WILL continue to sell engines to Ford

WITH ABSOLUTELY NO DEDUCTIONS
http://www.navistar.com/newsdetail.aspx?id=843

Navistar to Continue Shipping Diesel Engines to Ford
Navistar And Ford Agree To New Process For Dispute Resolution Warrenville, Illinois - March 08, 2007
– Navistar International Corporation (OTC: NAVZ) announced today that it has entered into a consent injunction with Ford Motor company in which Navistar's operating company will continue shipping 6.4L Power StrokeĀ® diesel engines and Ford will pay, without deductions, for each engine.

International Truck and Engine Corporation, Navistar's principal operating company, has been the exclusive diesel engine supplier for Ford's Super Duty pickup trucks since 1979 and last month launched a new 6.4L Power StrokeĀ® for Ford's new Super Duty.

According to Navistar, International suspended production on February 26 because Ford had stopped honoring the terms under which the engines were built. Ford sought a temporary restraining order from Judge John J. McDonald of the Circuit Court of Oakland County, Michigan.

Judge McDonald issued an order on February 28 that required International to resume production and Ford to pay with no withholding until a hearing was held. The hearing was held yesterday and Judge McDonald asked the two companies to continue discussion to determine whether an agreement can be reached prior to a trial. The companies met and as a result, Judge McDonald issued today's consent injunction that supersedes the temporary restraining order. The new order also requires officers from both companies to meet in an effort to resolve the dispute.
COME ON FORD, WHEN ARE YOU GONNA LEARN
EDIT: Sorry for it being old news
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Old 4/4/07, 05:00 PM
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Yeah this is old, and just for the existing Power Stroke. Ford couldn't switch Cold-Turkey to another supplier, and likely couldn't move the Power Stroke design even if they had a waiting supplier. My fingers are still crossed we'll hear an announcement in a few months that Ford's teaming with CAT on a new-for-09 engine to replace the PS.
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