Stiffing your suppliers is a dumb thing to do
Navistar suspends diesel engine production; says Ford not honoring terms
Navistar International Corp. said today that it has halted production of the
Power Stroke diesel engine it makes for Ford Motor Co. because of a contract
Warrenville, Ill.-based Navistar is the exclusive diesel engine supplier for
Ford's heavy duty pickup trucks. In a statement today it said it "pays its
suppliers and employees under contract terms and that it expects Ford to
honor the terms of its agreement."
Ford officials could not immediately be reached for comment.
In January, Ford sued Navistar, saying the engine maker was not complying
with warranty cost-sharing agreements and that it had unjustifiably raised
prices on its products. The suit said at the time that Navistar had
threatened to cut off shipment if Ford did not pay the new prices for its
Navistar said it will stop making the 6.4-litre Power Stroke at its
Indianapolis and Huntsville, Ala. factories but that the Huntsville plant
will continue production for other customers.
"If they pull a knife, you pull a gun. If they put one of yours in the
hospital, you put one of theirs in the morgue."
Sean Connery, "The Untouchables"