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
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
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