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Ford Sues Navistar
POSTED: 10:06 a.m. EDT, January 19,2007

Ford Motor Co. has filed a lawsuit against Navistar International Corp. over warranty costs and the prices of the diesel engines it supplies the auto maker, Bloomberg reports.

In the filing, Ford alleges Warrenville, IL-based Navistar owes it money under an agreement to share engine warranty costs, which it says Navistar has failed to pay.

Navistar diesels, which Ford uses in its best-selling line of Super Duty F-Series pickup trucks, have been the subject of various quality issues in the past.

Also in the lawsuit, Ford says Navistar began raising prices for the engines ¡°without adequate explanation or support for its actions.¡±

Ford seeks reimbursement equal to what it says it overpaid for the engines.
A Navistar spokesman tells Bloomberg the lawsuit is ¡°totally without merit, and we¡¯ll vigorously respond in court.¡±

From: wardsauto
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