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Ford Sues Navistar in Dispute Over Diesel Engines
Ford Motor Co. sued Navistar International Corp., the supplier of diesel engines for one of the automaker's most important models, in a contract dispute over warranty costs and engine prices, Bloomberg reported.
Navistar, the parent of International Truck and Engine Corp., builds diesel engines for Ford's Super Duty pickup trucks, which make up about 40% of Ford’s F-Series truck sales, Bloomberg reported. The suit, filed in a Michigan state court, alleges Navistar owes Ford money under an agreement to share engine-related warranty costs, Bloomberg reported.
The automaker also said in the lawsuit that Navistar began raising prices for 6.4-liter engines “without adequate explanation or support for its actions.”Navistar spokesman Roy Wiley told Bloomberg the lawsuit was “totally without merit and we'll vigorously respond in court.”
