Ford sues Navistar over engine pricing, warranty funding

| 1/15/2007

The Ford Motor Company is suing Navistar International over the 6-liter diesel engines that Navistar supplies to Ford to put in its pickups.

According to The Chicago Tribune, Ford’s lawsuit claims Navistar is charging more than Ford agreed to in its original contract, and that Navistar isn’t paying enough to cover its share of any warranty claims involving the engines.

Navistar – which is the parent company of International Truck and Engine Corp. – has denied the charges.

Meanwhile, Ford is withholding some money it owes Navistar, and Navistar has allegedly threatened to withhold its engines in retaliation, the Tribune reported.