Ford Motor Co. will repay Navistar International Inc. $80 million as part of a deal that will ensure continued supply of diesel engines for its Super Duty pickup trucks in the immediate future, The Associated Press reported.
Ford had debited about $160 million from Navistar invoices as part of the dispute over warranty and pricing issues, AP said. An agreement reached last Thursday and released Friday by a Michigan circuit court judge requires Ford to transfer $80 million to Navistar by today.
The auto maker can pursue a return of the $80 million through its ongoing lawsuit, AP said. Ford sued Navistar in January in Oakland County Circuit Court in Michigan, citing the warranty and pricing issues.
Ford has argued that its contract with Navistar states Ford may debit invoices, while Navistar disputes that claim, AP said.
Navistar stopped shipping the Power Stroke diesel engines to Ford, prompting the auto maker to go to court to force Navistar to continue deliveries, AP said.
The two companies have agreed to a consent order under which Navistar will continue shipping engines to Ford, and the auto maker will not debit Navistar's invoices, AP said. L&MT