Stiffing your suppliers is a dumb thing to do
Navistar suspends diesel engine production; says Ford not honoring terms
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 engines.
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"