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.
