Navistar Sues Ford in Engine Dispute

Navistar International Corp. said Wednesday it has filed a lawsuit against Ford Motor Co. for breach of contract relating to a diesel engine contract involving Ford’s F-150 pickup truck and is seeking “at least hundreds of millions of dollars” in damages.

In the suit, filed in Cook County, Ill., circuit court on Monday, Navistar said it believes Ford intends to introduce a new diesel engine that actually was designed by International Truck and Engine Corp., Navistar’s principal operating company.

International makes light-, medium- and heavy-duty diesel engines.

According to the lawsuit, Ford is developing a 4.4-liter diesel engine for production in North America by late 2009 or 2010, or possibly earlier, and intends to produce the engine itself for use in the F-150, and possibly other vehicles.

The suit contends that Ford cannot do that without violating its contract with Navistar. Reportedly, Ford is considering producing V8 diesel engines at a Ford facility in Chihuahua, Mexico.