Judge to Navistar: Ship Diesels to Ford!
By: Mike LevinePosted: 02-26-07 20:14 PT
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A Michigan judge has issued a temporary restraining order forcing Navistar to resume production and shipments of its new 6.4-liter Powerstroke diesel engine to Ford Motor Company. The judge also ordered Ford to pay Navistar the full cost for each engine and not withhold monies related to warranty claims reimbursements that Ford says its owed by Navistar.

On Tuesday Navistar International announced it would stop shipping PSDs to Ford because of a disagreement over engine costs and warranty obligations between the two partners.

The dispute will temporarily impact production of the new 2008 Ford Super Duty pickup at the Louisville, Kentucky factory where the trucks are produced, until new engines start to arrive. About 75% of Super Duty pickups ship with the PSD option.

A follow-up hearing is scheduled for March 7, to continue arguments related to the dispute.

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