Navistar seeks $2 billion from Ford as engine battle escalates

Navistar seeks $2 billion from Ford as engine battle escalates
Reuters / May 2, 2007 - 3:00 pm / UPDATED: 5/2/07 4:10 P.M.
CHICAGO (Reuters) -- Truck and engine maker Navistar International Corp.
said today it had filed an amended counter-complaint in its legal fight with Ford Motor Co. that seeks damages of more than $2 billion from the automaker.
Navistar, the exclusive supplier of diesel engines to Ford's Super Duty pickups since 1979, said the amended complaint was prompted by indications that Ford was planning to develop diesel engines of its own for introduction prior to 2012.
The counter-claim is the latest twist in contract dispute that begin in January, when Ford sued Navistar over warranty costs and engine prices related to the contract for the F series, the most popular vehicles in their class.
That prompted Navistar to briefly cut off diesel engine shipments to Ford -- though a judge later ordered the company to resume those shipments while the case proceeds.
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When you go order a new heavy duty truck from Ford, the diesel option costs a few thousand dollars.
That cost is not for the extra components that go into a diesel, it's the fees that the lawyers on both sides charge and anybody ordering a diesel is paying for their fees. Let's see now.......you've got to pay for Ford's lawyers and you've got to pay for Navistar's lawyers. That's a double whammy! What does the diesel upgrade cost, $4K? Yea, that's about right.
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